Magna, Onex to buy 40 percent each of Chrysler
German magazine reports that DaimlerChrysler would keep 20 percent stake in deal.
May 12 2007: 1:05 PM EDT
Magna, Onex to buy 40 percent each of Chrysler: report -- Autoparts supplier Magna International and buyout firm Onex Corp., both of Canada, are planning to buy 40 percent each of carmaker DaimlerChrysler's Chrysler Group, a German magazine reported.
Germany-based DaimlerChrysler (Charts) would keep a 20-percent stake, the WirtschaftsWoche business weekly reported, citing unnamed sources close to Magna's top management.
DaimlerChrysler was created in 1998 through the merger of Germany's Daimler-Benz AG and U.S.-based Chrysler Corp. Its divisions include the Mercedes Car Group, Chrysler Group and the Truck Group.
DaimlerChrysler has been meeting with potential buyers for the loss-making Chrysler unit, including Magna as well as private equity firms Cerberus Capital Management and Blackstone Group, sources have told Reuters.
Billionaire Kirk Kerkorian's investment arm, Tracinda Corp., has bid $4.5 billion for Chrysler