There are some things that Wall St can’t make up, so investors have to go to The Wall Street Journal to find them. A Russian aluminum executive who may be worth over $1 billion is putting $1.54 billion into Magna International (MGA), the Canadian car parts operation that wants to buy Chrysler. The investment carries with it six of the company’s fourteen board seats.
Even if the US could block a Magna purchase of Chrysler because the investment may be considered undesireable and Chrysler does work for the federal govenment, the move by the Canadian company still borders on surreal. To think that DaimlerChrysler (DCX) would sell the company to an entity with ties to organized crime is beyond the pale. The UAW would probably not smile on the deal either, despite Jimmy Hoffa’s history.
Look for Chrysler to be sold to another firm or stay with Daimler.
Douglas A. McIntyre