Magna's Stronach: I have financing for Chrysler deal

agna International Inc. Chairman Frank Stronach today acknowledged that his company is bidding for the Chrysler group and that he has lined up financing, according to reports in the Toronto Star and Bloomberg News Service.

Stronach said Magna has a cash reserve of about $2 billion, and there is no need for it to add debt to fund a purchase, according to the newspaper.

Stronach also said he has lined up banks to back the transaction and has asked DaimlerChrysler to retain a stake in the U.S. automaker if his attempt to buy it succeeds, according to Bloomberg.

"We expect the picture to come clearer in the next few weeks," Stronach told reporters.

Magna, of Aurora, Ontario, is one of the world's largest auto suppliers, with sales of $24.2 billion in 2006. A subsidiary, Magna Steyr, assembles several European models for Chrysler in Graz, Austria.