Chrysler to Refuse Kerkorian's Representative a Seat on Board?

02/07/96

Reuters reported that some of Chrysler's institutional shareholders predict that the corporation will reject Kirk Kerkorian's bid to place Jerome York, his Chief Financial Officer on the Board. York, Kerkorian's top, strategist is one of Chrysler's former Chief Financial Officers.

Robert Eaton and Robert Lutz, respectively Chrysler's Chairman and President, have both announced that York wouldn't make a good board member, because he would not represent all shareholders. The decision to reject Kerkorian's bid will be bolstered by Chrysler's strong financial performance.

Kerkorian has threatened to launch a proxy fight and solicit shareholders to elect York, but industry analysts think that Kerkorian would not win.

Paul Dever -- The Auto Channel