Takeover Bid Doubts Hurt Chrysler Stock

Skepticism of Kirk Kerkorian’s takeover try and a raft of reduced profit estimates from analysts pushed down Chrysler Corp.’s stock price Thursday.

Meanwhile, executives of Kerkorian’s Tracinda Corp. continued working to put together a formal offer to buy the 90 percent of Chrysler’s shares that are not already owned by the Las Vegas billionaire.

“We continue discussions with bankers and lenders and so on, and we continue to find a lot of interest,” said Tracinda spokesman Michael Claes.

Chrysler shares dropped $1.75 to $44.50 Thursday on the New York Stock Exchange. The stock has slipped from a peak of $48.75 since April 12, when it shot up $9.50 on news that Kerkorian and former Chrysler Chairman Lee Iacocca had proposed a $23 billion takeover of the automaker.

Since then, Chrysler has said it is not for sale. As well, Kerkorian has provided no details on where he would borrow the $12 billion or so he would need for the deal.

Meanwhile, Chrysler has reported first-quarter profits 37 percent below last year’s.