Kerkorian Turns Up Heat On Chrysler

Answering allegations that he’s just out to line his wallet, renegade stockholder Kirk Kerkorian challenged Chrysler Corp. on Thursday to ban shareholders from receiving any profits not shared by all.

The No. 3 automaker has suggested that the Las Vegas billionaire, whose Tracinda Corp. sought to purchase Chrysler six months ago, is seeking a premium-priced buyout of his millions of shares - a practice known as greenmail.

Kerkorian has rejected that suggestion. His latest denial was prompted by a speech two days earlier in which Chrysler Chairman Robert J. Eaton accused Kerkorian of seeking “personal gain” at the expense of other shareholders.

Eaton’s unusually harsh speech, along with a national ad campaign, signaled a new aggressive tone by Chrysler in its efforts to rid itself of the Kerkorian thorn.

In a brief letter to Eaton, Kerkorian denied that Tracinda was trying to benefit at the expense of other shareholders and asked Chrysler to “immediately put in place an appropriate amendment to the by-laws to ensure that no shareholder receives any benefit for its shares that is not equally available to all shareholders.”