	chrysler c amc buyout valued at billion chrysler corp s proposed uisition of american motors corp is valued at about billion dlrs including the cost of uisition and the mln dlrs in american motor debt that chrysler will assume analysts said they said chrysler s cost of uisition was valued at mln dlrs paid in cash notes and chrysler shares the analysts told reuters that at a new york briefing chrysler treasurer fred zuckerman outlined his company s agreement with renault to assume amc s debt as well as mln dlrs in unfunded pension liabilities though the latter is not included valuing the transaction analysts were generally positive on chrysler s proposed purchase of its much smaller rival but said they expected the transaction would carry with it a short term dilution in chrysler s earnings a chrysler financial source speaking anonymously told reuters that the proposed purchase price was smaller than it would have been had a deal been struck last year because the impact of the new u s tax law removes chrysler s ability to assume amc s large reserve of tax loss carryforwards accumulated from its losses since there were very serious discussions last fall but we didn t pull it off the source said in a reference to the assassination in november of former renault chairman georges besse it s too bad because the tax benefits fell on the floor and renault could have gotten a much better price if we d done it before the end of last year in addition to amc s debt and its pension liabilities the source said chrysler would also assume any liability from lawsuits over the safety of jeeps which he called an overhang to the company analysts quoted chrysler officials as having told them that the deal includes payment to renault of mln dlrs principal in the form of a year note at eight pct interest mln dlrs cash for renault s equity in amc s finance subsidiary mln dlrs in cash for transaction fees in connection with the uisition and mln dlrs worth of chrysler stock to be paid amc shareholders the big number is the mln dlrs in debt assumption analyst jack kirnan of kidder peabody and co told reuters moody s investors service inc said it may downgrade billion dlrs of chrysler corp and unit debt due to the deal but the chrysler source said that in assuming amc s liabilities his company will refinance at a lower rate any amc debt that is being carried at non market rates he said there were difficulties in negotiating with the previous renault management on the uisition because they were committed to the group s business plan of which amc was an integral part the new management didn t have that problem amc wasn t their baby he said reuter 
