Thursday, April 05, 2007

Kerkorian is at it again.

Kirk Kerkorian has made a low ball offer of 4.5 billion dollars for Chrysler. The experts say that Chrysler may be worth 9 billion - I don't know if it's true or not as I have not looked at their cash flows. From what I can see in the real world, Chrysler vehicles are not favored very much by the consumers - even the 300 has lost its luster.

Kerkorian is amazing. Most of his deals revolve around two companies - MGM and Chrysler. He buys 'em cheap and sells then makes a killing when he sells them. He keeps finding suckers who buy high and sell low. But I don't think he's gonna be successful this time. Private equity firms are quite aggressive nowadays and sometimes they do irrationally exuberant deals to take public companies private.

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