Magna Confirms Chrysler Interest

Company announced Friday that it is looking into a possible transaction, but added that it may not happen.

Canadian auto-parts maker Magna International Inc. confirmed Friday that it is reviewing potential alternatives regarding the future of the Chrysler Group.

Since DaimlerChrysler is one of its largest customers, Magna in March began looking into the situation with the Chrysler Group and any role Magna may have in a possible transaction. It has been rumored that Magna would partner with a private equity firm to buy part of Chrysler, allowing Magna to hold a portion of the U.S. business while the firm would sell its portion at a profit.

Magna said it had $1.9 billion in cash reserves and $1.8 billion in credit available. Analysts noted that Magna was in discussions with Chryselr for a 30 to 40 percent stake for $1.5 billion.

Magna has not announced any definitive transactions, and said a deal may not occur.

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