Chrysler Working To Seal AMC Buyout Deal Before Shareholders Meeting
DETROIT (AP) _ Chrysler Corp. stepped up negotiations with American Motors Corp., hopeful of announcing a final agreement to take over ailing AMC during Thursday’s annual meeting of Chrysler shareholders, a newspaper reported today.
Negotiations focused Tuesday on AMC’s concerns about job security for its workers and on the price of stock offered by Chrysler to minority AMC shareholders, an unnamed source told the Detroit Free Press.
Renault, the French government-owned automaker, reached tentative agreement with Chrysler on March 9 to sell its 46.1 percent stake in AMC for $1.5 billion.
That price, however, included the purchase of non-Renault shareholders’ stock in AMC, for which Chrysler has offered $4 per share. Some of those shareholders have complained that that offer is too low in light of AMC’s $43 million profit in the past six months, the Free Press said.
Chrysler hoped to reach final agreement on the AMC buyout by Thursday morning, when its annual shareholders’ meeting was to begin in Savannah, Ga., the source told the newspaper.
Robert Lutz, executive vice president of Chrysler Motors, confirmed that talks with AMC over the price of non-Renault stock was ″one issue among many.″ But he added that parties to the talks were ″90 percent confident at this point″ that the buyout could be consummated by mid-June.
AMC spokesman Edd Snyder said he was not aware that a final agreement was on the verge of being announced.
Chrysler executives, meanwhile, planned to meet today with top United Auto Workers officials at union headquarters in Detroit to review the AMC acquisition, the UAW said.