Kerkorian Still Has Chrysler Fixation

Billionaire Kirk Kerkorian just can’t get enough of Chrysler Corp.

Less than a month after he dropped a $22.8 billion hostile bid to buy the No. 3 automaker, Chrysler’s largest stockholder said Monday he will spend $700 million to increase his stake in the company.

Kerkorian’s Las Vegas-based Tracinda Corp. offered to buy 14 million shares at $50 each - $5 a share less than what he offered to pay for the company in April. The additional stock would raise Kerkorian’s ownership to 50 million shares, or just under 15 percent of the company.

Analyst Stephen Willard of Gibson, Dunn and Crutcher in Washington called the stock purchase “a bit of a non-event” aimed only at keeping Kerkorian visible after the failed buyout attempt.

“Kerkorian is looking to get back into the conversation on the future of Chrysler after what some might see as a rather embarrassing defeat,” Willard said.