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Kerkorian May Increase Stake in Chrysler Corp. : Autos: Investor's SEC filing lists alternatives that include a possible takeover of the auto maker.

November 05, 1994|From Bloomberg Business News

WASHINGTON — Investor Kirk Kerkorian said Friday that he is considering ways to enhance the value of his 9% stake in Chrysler Corp.

In documents filed with the Securities and Exchange Commission, Kerkorian said he is exploring a broad range of alternatives, including the purchase of additional shares, the sale of stock and even an "extraordinary corporate transaction, such as a merger."

However, he appeared to be listing a takeover of the auto giant among a laundry list of possibilities, as required by SEC rules, rather than as a specific plan.

The paperwork was not filed because Kerkorian bought more stock, but was required because he is considering major changes in his plans for his shares, which account for the single largest stake in the auto maker.

Kerkorian, chairman of Tracinda Corp., is apparently pleased with Chrysler's current executives.

"Mr. Kerkorian and Tracinda have a very high regard for the company's current management and have held discussions from time to time with the company's management regarding the company, and anticipate they will continue to have these discussions with the company's management in the future," Kerkorian said in the filing.

Chrysler spokeswoman Karen Stewart said Chrysler management was told by Kerkorian, who now owns 32 million shares, or 9.04% of the company, that he planned to make the filing Friday.

Chrysler shares fell 62.5 cents to $47.375 on the New York Stock Exchange. The stock hit an all-time high of $63.50 earlier this year.

Kerkorian entered the picture at Chrysler in 1990 when he bought 22 million shares at $12 a share. He now has a paper profit of about $780 million on that portion of his Chrysler stake--down from a peak of $1.1 billion in February.

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