KERKORIAN-CHRYSLER, PART TWO

Why has Kirk Kerkorian tendered a new offer of $50 apiece for 14 million shares of Chrysler? Investment analysts were a bit confused by the offer, which would increase his stake from 10 percent of the company to 14 percent.TIME's William McWhirterthinks Kerkorian's bid is a signal to management that he's ready to sell his interest in the company and get out. "It doesn't make sense. Kerkorian could go through the open market, where the stock's at $47 1/2, and save himself some money. And would he spend $700 million just to make himself more of an annoyance to the company where he's definitely not wanted? It's more likely that this is a signal to Chrysler of what Kerkorian will accept as his price to sell and fold." Chrysler officials would not comment on the offer, but McWhirter says they would jump at any chance to buy out Kerkorian, a thorn in management's side since the company rejected his $22.8 billion buyout offer in April.