Billionaire Kirk Kerkorian's Tracinda Corp. said Wednesday it now holds a 13.1 percent stake in Chrysler Corp., up from 10 percent, following its recent offer to buy Chrysler shares for $50 each.
Tracinda, which already was Chrysler's largest shareholder, launched an unsuccessful takeover bid of $20 billion, or $55 a share, for the automaker in April. Tracinda, Kerkorian's Las Vegas-based investment vehicle, dropped its bid because it couldn't get financing.In its latest bid of $50 a share, Tracinda sought to buy 14 million Chrysler shares for $700 million. Chrysler shareholders tendered 58.4 million Chrysler shares in the offer, which expired July 25.
The company said it will begin payment for the 14 million shares Thursday, and the remaining 44.4 million shares tendered will be returned to shareholders.
Chrysler shares closed Wednesday at $48.371/2, up 621/2 cents, on the New York Stock Exchange.