Penske Quells Detroit Diesel Rumors

Detroit Diesel intends to remain independent, according to a statement issued April 28 by Roger Penske, the company’s chairman.

The statement came in response to reports earlier that day that DaimlerChrysler Corp. was debating whether to increase its holdings in Detroit Diesel or sell out altogether.

“We want to reiterate our intention to maintain an independent path in the marketplace,” Penske said. “And to underscore that strategic direction, we have indicated to DaimlerChrysler our interest in the repurchase of their 20% interest in our company.”

At current prices, DaimlerChrysler’s stock in Detroit Diesel would be valued at about $120 million.

ast week, Detroit Diesel reported record first-quarter net income of $12.5 million, compared with $9.7 million in the first quarter of 1998.

DaimlerChrysler spokesmen confirmed reports of the internal debate, but declined to comment further.

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