Magna International, along with fellow Canadian company Onyx Corp., has a bid in for a stake in Chrysler, and now additional funds may be coming from Russia. Edmunds'
Auto Observer is reporting that Russian billionaire Oleg Deripaska is ponying up $1.54 billion to expand Magna into Eastern Europe, where Deripaska controls Russian Automaker GAZ. Magna is already working with GAZ on several projects, including a new plant in Nizhny Novgorod.
The $1.54 billion could be used to help Magna put together the necessary funds to buy
Chrysler, and it represents yet another reason many consider Magna to be a
front-runner to own the automaker. The UAW prefers the Union-friendly supplier wins out over private equity groups like Cerberus and Blackstone, and Magna is also profitable, with record revenues in the first quarter of this year.
It seems like just yesterday when the words "Supplier" and "Bankruptcy" went hand in hand, and here we are half-way through 2007, and Magna International seems to be on the precipice of owning the automaker for which it supplies parts. Oh, how the tables have turned.
[Source: AutoObserver]
