Chrysler Announces 2-For-1 Stock Split

Chrysler Corp. said Thursday it will split its stock and hike its dividend 16 percent, distributing some of its cash hoard to investors three months after reaching a truce with billionaire investor Kirk Kerkorian.

Kerkorian had sought to buy the No. 3 automaker as part of a three-year effort to push the company to share more of its wealth with shareholders. Chrysler argued it needed to conserve its cash against another recession.

In its first stock split since 1987, the automaker will distribute two shares for every share now held. Chrysler’s board also increased the quarterly dividend to 70 cents a share from 60 cents. The dividend is given on shares before the stock split effective June 15.