WALL STREET STOCKS/CHRYSLER <C>, AMC <AMO>
The proposed 757 mln dlr deal under
which Chrysler Corp would acquire American Motors Corp was
described by analysts as a reasonable deal for both companies.
    Ronald Glantz of Montgomery Securities said AMC common
stock could be fairly valued at "just under five dlrs a share"
given changes brought by tax reform and that Chrysler's offer
to pay four dlrs a share of Chrysler stock to AMC holders other
than Renault as a "a good price for Chrysler.
    AMC common shares opened at four dlrs this morning after
the Renault-Chrysler announcement, up 3/8, while Chrysler
shares lost 1/4 to 52-1/4.
    Though AMC issued a statement saying that it was studying
the proposed buyout and had no other comment, Glantz said he
regarded the proposal as a "done deal" because "I can't believe
anybody else would make a bid."
    "It's a reasonable deal for both sides," the analyst told
Reuters.
    "Chrysler gets the jeep franchise and the (new AMC)
Bramalea, Ontario, plant and the (new Renault) Premier
(mid-sized car) and AMC's sales will go up because buyers will
have more confidence that the manufacturer will still be around
to service the products," Glantz said.
    Analyst Thomas O'Grady said Chrysler would be getting more
manufacturing capacity, including a brand-new plant in Canada,
for a bargain price and Renault would be getting some return
after its prolonged loss-making investment in AMC.
 Reuter
