Russian Machines, a unit of industrial holding Basic Element, owned by russian billionaire Oleg Deripaska, would indirectly acquire 20 million shares of auto parts supplier Magna International, raising speculation that the company is generating cash for a bid to buy Chrysler Group.
For its $1.54 billion, Russian Machines would get about 18 percent of Magna’s Class A shares, but also would get 42 percent of the shares in a new holding company that would be formed to run Magna.

Frank Stronach, Magna’s chairman, and his family would get 42 percent, with the remainder held by Magna senior management.

The AP news agency quotes Rich Morrow, an analyst with Jennings Capital Inc. in Toronto who follows Aurora, Ontario-based Magna. Mr Morrow said it’s likely the company is raising money for its bid to buy Chrysler.

“I would speculate that this is related to Chrysler,” he said.

Under terms of the agreement with Russian Machines, Magna would remain a Canadian company with shares listed on the Toronto and New York Stock exchanges.

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