Frank Stronach, founder and chairman of Magna International, has acknowledged that his company is definitely making a bid to take control of Chrysler and that they have the money lined up. Magna is partnering with Onex Corporation to make the bid based on $2 billion in cash reserves from Magna with the rest coming from Onex. Stronach doesn't intend to borrow any money up front for the purchase and is thought to have made a bid of about $4.5 billion. Magna and Onex are also considering taking on more partners, presumably so that they can sweeten the bid without borrowing. Stronach also said that more employment bloodletting is "unavoidable" if the deal goes through.

[Source: Toronto Star]

Share This Photo X