Blog: Kerkorian bids for Chrysler
Dave Leggett | 10 April 2007
I guess it shouldn’t be too surprising that Kirk Kerkorian has put in a bid for Chrysler, given the history there.
As a major Chrysler shareholder Kerkorian took a hosing when the newly formed DaimlerChrysler share price headed relentlessly south.
He had plenty of money elsewhere but the devaluation of his Chrysler investment seemed to hurt. A failed legal challenge (that seemed to amount to a stamp of the feet and the cry, it’s just not fair!) earlier this decade underlined the unhappy truth that Kerkorian had little influence and few friends in Stuttgart.
His attention, along with that of his trusty first lieutenant Jerry York, eventually turned to GM. But that particular power play turned to custard last year when his attempt to broker a deal with Renault-Nissan failed.
The bloke will be ninety years of age next year. You might imagine he would perhaps lose the apparent fixation with Detroit. He has plenty of other stuff to occupy himself with, after all.
What are the motives in going for Chrysler? Maybe he sees a simple money making opportunity based on the share price. He and York may also genuinely believe they know what’s best for a US-based automaker such as Chrysler; Kerkorian the hard nosed moneyman, York the strategist with ideas. They certainly don’t lack conviction and maybe they also have a potential alliance partner in mind.
Would they relish the chance to finally take the helm at Chrysler? Just a bit. I suspect that for the two of them, it’s about more than just the money.
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