Tracinda Ready to Offer $4.5B for Chrysler

U.S. private-investment firm Tracinda Corp. is ready to offer $4.5 billion to buy Chrysler Group, a letter sent to DaimlerChrysler AG’s board said Thursday.

The Beverly Hills, Calif., firm owned by billionaire investor Kirk Kerkorian is willing to post a $100 million deposit as a sign of good faith, the letter, first reported by The Wall Street Journal, said.

The right (meaning exceptionally patient) private ownership can do things that are difficult for both public companies and the wrong (meaning not so patient) private ownership, a cover letter accompanying the proposal letter said.

The offer is contingent on Chrysler’s reaching a favorable labor contract with the United Auto Workers union, the proposal letter said.

The investor, who recently sold his 10 percent stake in General Motors Corp., was an active Chrysler Corp. shareholder before the company merged with Daimler-Benz AG in 1998.

Tracinda seeks exclusive rights to conduct due diligence on Chrysler, which it believes could be completed within 60 days, the letter said.

DaimlerChrysler is reportedly entertaining bids from private-equity firm Cerberus Capital Management LP, a tandem of Blackstone Group and Centerbridge Capital Partners, and Magna International Inc.