BID FOR A GIANT AUTO MAKER : Taking Over
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Billionaire investor Kirk Kerkorian, with the backing of auto industry icon Lee Iacocca, proposed to take over Chrysler Corp., the nation’s third-largest auto maker, in a deal worth $22.8 billion.
CHRYSLER AT A GLANCE
Headquarters: Highland Park, Mich.
Chief Executive: Robert Eaton
Employees: 121,000 worldwide
Major products: Researches, designs, manufactures and sells cars, trucks and vans including Chrysler, Dodge, Plymouth, Eagle and Jeep models. Also provides vehicle financing and rental services.
1994 Revenue: $52.2 billion
1994 Profit: $3.7 billion
Earnings per share: $10.11
Wednesday stock price: $48.75
Kirk Kerkorian
Worth $2.5 billion according to Forbes Magazine. Kerkorian has been involved with everything from airplanes to entertainment. Now he wants to buy Chrysler with Lee Iacocca.
CAREER HIGHLIGHTS:
* Dropped out of school during the Depression years to help support his family.
* Formed his own airline in the late 1940s, selling it to Transamerica Corp. in 1968.
* Built the $1-billion, 5,005-room MGM Grand in 1993.
* Bought controlling interest in Metro-Goldwyn-Mayer studios in 1969. Purchased United Artists in 1981 and merged the two into MGM/UA Entertainment Co. In 1985, sold MGM and the studio’s movie rights to cable TV mogul Ted Turner.
* Began accumulating shares in Chrysler in December 1990, and now is its largest shareholder, with 10.14%.
LEE IACOCCA
With the possible purchase of Chrysler with Kirk Kerkorkian, Lee Iacocca returns to the automotive world for the first time since his retirement.
* During 46-year auto industry career, gained respect of board room executives and assembly line workers alike for brash, no-nonsense style.
* Born in Allentown, Pa.
* Joined Ford in 1946.
* Introduced Mustang in 1964.
* Became president of Ford in 1970. Dismissed in 1978.
* Joined Chrysler almost immediately afterward.
* In 1979, persuaded Congress to provide $1.5 billion in loan guarantees to help rebuild public confidence in Chrysler.
* 1984 autobiography “Iacocca” sold over 7.5 million copies.
* Transformed Chrysler’s $800-million 1991 loss into a $732 million 1992 profit.
* Retired from Chrysler at end of 1992.
Source: Wire reports.
Researched by JENNIFER OLDHAM / Los Angeles Times
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