Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 14, 1995 TAG: 9504140019
SECTION: BUSINESS PAGE: A-11 EDITION: METRO
SOURCE: KIMBERLY D. DAVIS STAFF WRITER
DATELINE: LENGTH: Medium
"Only Mr. Kerkorian and Mr. Iacocca know what's really going to happen," said Richard Duffner, president of Thompson Chrysler Plymouth in Radford. He referred to Kirk Kerkorian and Lee Iacocca, who on Wednesday proposed buying Chrysler Corp.'s stock for $55 a share.
"With so little known about it, it's really hard to make a judgment call about anything," he said.
Paul Robinson, vice president of sales at University Motors Ltd. in Blacksburg, said he was "shocked" at the takeover attempt when it was announced Wednesday. But because Chrysler rejected the offer, Robinson said Thursday that a hostile takeover was unlikely.
"I don't see any big changes," he said. "I don't see them taking it over really."
Bob Kaplan, co-owner of Dominion Dodge in Salem and Dominion of Bedford, said that Kerkorian has "caught everybody off guard."
"You know these comments that say he hasn't lined up any investors?'' he said. "He's too smart to let that happen. I think the proverbial other shoe's going to drop soon."
Kaplan said he hopes Chrysler is able to maintain it's "enlightened management" and "large cash reserves" because they are an "important aspect of the company."
"I'm concerned that a takeover would strip the company of cash, and add to the debt," he said.
Kaplan, who owns a "minuscule" amount of the automaker's stock, speculated that in the short run, stock would increase 20 percent, but added that from a dealer's perspective, he saw nothing positive in the takeover.
"In the long run, not having cash may prevent Chrysler from bringing out a new product and adding to what they do have," he said.
by CNB