Chrysler bid at ONLY $4.5 billion????

How can the bid by Kirk Kerkorian be only $4.5Billion when Chrysler's market value is $85Billion? What percentage holding is he targeting? if Chrysler had evident problems like union, pension fund depletion, brand damage, why aren鈥檛 stock prices falling to reflect that to its current perceived value of $4.5Billion?

The market cap may or may not reflect what the company would be worth when dismantled and sold in pieces (which is what Kerkorian will do). Also, Kerkorian cannot buy all of the shares in one fell swoop - most shares are held by institutions and the board would have to approve the tender offer.

Remember what Chrysler was worth before Mercedes sucked all of the billions out of it - that is the real crime - they took $100 billion of US money and moved it to Germany to support the ailing flagship, and now that there is nothing left, will sell for scraps.

That $4.5 Billion is only to raise his stake. He must report it as an "insider" and he is bidding on a block. Not the whole company. He will also raise his stake high enough to get access to all the "Books" to access the true value and decide whether or not to continue to buy or walk away and sell out.
It is also common practice of a share holder this size to increase holdings, make a bid to get others interested and thus drive the stock price up.........