openPR Logo
Press release

Chrysler: Saving A Great Automaker, or Breakup Deal?

04-20-2007 12:35 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: i1connect

Labor Union Friendly Bids Left Out in Favor of Private Equity Buyouts

As DaimlerChrysler AG Executive and Board Member, Rüdiger Grube, meets with prospective buyers this week at JP Morgan Chase offices in New York, it appears that two more union-friendly proposals have been left out of those meetings.

Grube is scheduled today to start a week long round of meetings with representatives from the tandem of Blackstone Group and Centerbridge Capital Partners LP; Cerberus Capital Management LP; and a partnership between Canadian auto-parts supplier Magna International Inc. and private-equity firm Ripplewood Holdings Inc.

The other two known bidders for Chrysler, Palm Beach Businessman Daniel Imperato and Kirk Kerkorian, were both not invited to these rounds of meetings. Ironically enough, both the Imperato and the Kerkorian led proposals included making the United Auto Workers an equity partner within the Chrysler Corporation.

The vision that Imperato and Kerkorian share is of building up the Chrysler Corporation. The two parties have stated their long term aspirations for the Chrysler Corporation which is why both have pursued union involvement. The other three bidders have not stated their long term interests in Chrysler.
Many have feared that a private equity group could liquidate the company to realize the reported $38 billion breakup value and destroy thousands of union jobs in the process. Such a move would leave Daimler Benz AG with an exit strategy out of Chrysler and would leave a private equity fund with a substantial profit. A long term bidder would most likely not pay a high premium for Chrysler in order to have the financial ability to help the struggling automaker.

Last Friday, on a Detroit radio station, UAW President Ron Gettelfinger said, "I've had no discussions with anyone from Tracinda, and I don't recall that anyone in our organization has."

Gettelfinger also added that other bidders had already approached the UAW regarding an equity stake. He did not indicate whether any of the three invited bidders for Chrysler submitted any proposals for such an involvement. Imperato was among the potential bidders who have had contact with high ranking UAW officials regarding a Chrysler equity partnership. Imperato was also the first bidder to go public with his desire for a partnership with the UAW and a detailed plan to do so.

Such a partnership has been considered as necessary to help fund Chrysler's reported $18 billion under funded pension program. While both Imperato's and Kerkorian's plans would give blue collar workers the ability to own stock in the company, Kerkorian has called for major union concessions whereas Imperato has asked for little to none.

The exclusion from this round of prospective buyer meetings would be the second time that both the Imperato and the Kerkorian groups have been left out by JP Morgan Chase.
Nine days after DaimlerChrysler Chairman and CEO Dieter Zietche's February 14th announcement of a possible sale of Chrysler, Jerome York, longtime Kerkorian lieutenant and former Chief Financial Officer of the Chrysler Corporation, was on the phone with Lawrence Slaughter, Chairman of JP Morgan Chase, regarding Chrysler. Tracinda, Kerkorian's company, had sent a formal letter to Mr. Slaughter on February 28 to declare their interest. The letter also asked for a due diligence package.

Both Kerkorian and Imperato, who have made several requests for the Chrysler Due Diligence package, were never given the detailed financial and product-development data that JP Morgan Chase prepared for the groups lead by the other three prospective buyers.

Kerkorian has a chronicled history with Chrysler, a company that he once tried to takeover in 1995, and sued in 2000 after the Daimler-Benz AG merger with Chrysler Corporation. He was unsuccessful in his takeover attempt in 1995 and a US judge ruled against his lawsuit in 2005.

On the other hand, Imperato has had less of a history with Chrysler. However, his proposal has not received serious consideration from Chrysler because of a March 2007 Detroit Free Press article that questioned the ability of his group to purchase Chrysler due to the size of one of the companies that Imperato owns. Imperato described the company as a "shell company setup for his kids" and said that his consortium was making the bid and not the "shell company".

Recently, Imperato stated that he would be open to meeting with Kerkorian, and has made contact with his office in order to arrange a formal meeting. In addition, Imperato has written a formal letter to Gettelfinger and has requested a meeting with him as well.

*** This release has been created by i1connect, an independent news agency.***

About i1connect:

I1 Connect ( is the new online leader in global public relations and advertising. With a diversified set of offerings ranging from Public Relations, Press Releases Distribution, Advertising, Marketing, Website Development, to Investor Relations services, has positioned itself for a long term growth utilizing the latest in telecommunications technology.

For Interviews and Media Inquiries Contact
Press Department
(561) 515-6177

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Chrysler: Saving A Great Automaker, or Breakup Deal? here

News-ID: 19140 • Views: 1024

More Releases from i1connect

GoIP and Visisys to Launch "Simone"
NEW YORK, NY / Jan 8, 2008 - GoIP Global, Inc. (Other OTC:GOGB.PK - News) (Frankfurt:3GG.F - News) announced today that a strategic partnership has been reached with Visisys Inc., the developer of Viso Vue. Viso Vue enables "Simone" (an animated, interactive character) with facial recognition to come to life on a video screen and interact with its viewer. Viso Vue uses stored customer or individual profiles to offer "Simone" realtime
i1search Gains in New Alexa Traffic Rankings
West Palm Beach, FL - November 21, 2007 – In another surprise, one of the internet's fastest growing search engines, i1search ( has leapfrogged several thousand websites to move into the top 45,000 websites in the United States, as determined by traffic rank measured by Alexa, the world's leading authority on internet traffic. i1search, as of November 21, 2007, has a traffic ranking of 43,875 in the
Imperato Steps Out Again - Predicts Republican Strategy for 2008
Washington, DC. -- Leading Independent Libertarian Presidential candidate Daniel Imperato has proven an uncanny ability to predict the headlines, especially when it comes to the Bush Administration and their cadre of “polished – ticians” methods of winning elections. Citing several of his own previous accurate predictions, Imperato made a new and even bolder prediction for what we can expect from the Republicans during the 2008 presidential campaign. He leads with
Imperato Calls it Again: Rudy Giuliani New York Mafia Conspiracy
New York - October 26, 2007 - "Giuliani taking credit for wiping out organized crime may have been a feather in his cap. Now that he's running for president, I hope that doesn't turn around on him to bite him back. People who live in glass houses shouldn't throw stones," stated Imperato. Those were the words stated on July 28, 2007 by 2008’s leading Independent Libertarian Presidential Candidate, Daniel Imperato. Yesterday, according

All 5 Releases

More Releases for Chrysler

Reliance Chrysler Dodge Jeep Ram Speaks About Their Jeep SUV
The Jeep brand incorporates the essence of rugged and versatile vehicles. Jeeps have a long history of building customer loyalty because of reliability, fuel economy, comfort, and internal fit and finish. Talking to Reliance Chrysler Dodge Jeep Ram shows Jeep fans described the brand as high quality, practical, good value for money, classic, and well made. Jeep Wrangler, Grand Cherokee, and Cherokee are among America's 10 Most Popular Vehicles. If you're regularly
Global Connected Vehicles Market 2018 - BMW, Broadcom, Chrysler, Benz, Daimler
Apex Market Reports, recently published a detailed market research study focused on the “Connected Vehicles Market” across the global, regional and country level. The report provides 360° analysis of “Connected Vehicles Market” from view of manufacturers, regions, product types and end industries. The research report analyses and provides the historical data along with current performance of the global PP Pipe industry, and estimates the future trend of Connected Vehicles on
Chrysler Bidder Imperato To Support Workers at Employee Buyout Demonstration
Detroit, MI – 6/1/07 Today Chrysler Bidder Daniel Imperato endorsed the workers movement at the Chrysler Corporation and the Chrysler Employee Owned Buyout Committee. Imperato who had originally proposed an ESOP (Employee Stock Ownership Plan) for the workers of Chrysler has now placed his backing behind the employee committee, headed by Michele Mauder. To his support, Imperato will be attending a worker\'s rally this Monday at Chrysler Headquarters in Auburn Hills. \"I\'m
Chrysler Employee Group Follows Imperato's Advice and Bids on Chrysler
Detroit – In a formal letter to DaimlerChrysler AG Chairman and CEO Dieter Zetsche, 25 employees from the local Chrysler Jeep manufacturing plan in Toledo, Ohio submitted a bid for the United Auto Workers to acquire the Chrysler Corporation. The committee named the \"Chrysler Employee Buyout Committee\", led by Michele Mauder, has proposed an employee stock ownership plan or (ESOP) in exchange for healthcare concessions. The proposal comes
Kerkorian Follows Imperato's Lead on UAW Chrysler Buyout Deal
Detroit, MI – April 5, 2007 - Today Billionaire Investor, Kirk Kerkorian, made a bid to buy back the automaker that he tried to buy 9 years ago, Chrysler. Kerkorian\'s wholly-owned investment company, Tracinda Corp., on Thursday made a $4.5 billion cash offer for DaimlerChrysler AG\'s U.S.-based Chrysler unit. A deal would put Kerkorian in charge of Chrysler a decade after he claims he was tricked out of potentially billions of
The Imperato-led Daimler-Chrysler Employee Owned Company Proposal
Detroit – March 11, 2007 – Recently, an international business consortium led by Daniel Imperato, has proposed to make Chrysler an Employee Owned Company (EOC). The Chrysler Corporation has attracted a great deal of buyout interest from major private equity groups, since the December 2006 announcement that Chrysler would consider all options. The Imperato-led Proposal, which would be around the most commonly stated buyout range