DaimlerChrysler snubs Kerkorian

The $4.5bn (£2.3bn) bid from Kerkorian's Tracinda Corporation is not regarded as a serious offer by the DaimlerChrysler board as it considers it too low and undervalues the carmaker by half. According to the Wall Street Journal, Tracinda wants the carmaker to shoulder some of Chrysler's $15bn black hole in pension liabilities and retiree health care costs, something that other bidders have not sought. DaimlerChrysler has also taken umbrage at Tracinda's request to exclusive rights to conduct due diligence for 60 days. Rudiger Grube, a top DaimlerChrysler executive is scheduled to meet with three potential bidders in the US this week but it is understood that Tracinda is not one of those companies. Private equity groups are thought to be leading the chase for the car company.