Both Magna and Blackstone make a bid for Chrysler this Morning

Bradford Wernle | Automotive News / March 23, 2007 - 9:05 am

Canadian supplier Magna International Inc. has joined with a private equity group to make an offer to buy the Chrysler group from DaimlerChrysler, according to Brett Hoselton, an analyst for KeyBanc Capital Markets.

Magna and its partner have made an offer to buy Chrysler for $4.6 billion to $4.7 billion, Hoselton says in his March 23 report. He cites sources at Magna but does not name the private equity partner.

According to Hoselton, Magna's stake would be worth 20 to 25 percent of the Chrysler group.

"While MGA views its offer as low and unlikely to prevail, the company also views it as an opportunity to purchase an inexpensive stake in the automaker should the other buyers retreat," Hoselton wrote.

Magna also is undertaking a strategic review of its interiors business, which includes "all options including operational improvements or the possibility of selling the business entirely," Hoselton added.

Magna could not immediately be reached for comment.