CHRYSLER <C> RENAULT DELAY AM MOTORS <AMO> PACT
Chrysler Corp and Regie Natiionale des
Usines Renault said they agreed to extend by up to two weeks
the period for reaching definitive agreement on Chrysler's
proposed 1.5 billion dlr takeover of American Motors Corp.
    The letter of intent signed by Chrysler and Renault on
March nine set April nine as the target date for completing
negotiations.
    However, the letter also allowed room for an extension of
that date to April 23 if an agreement could not be reached.
    The two companies said they "now plan to complete work by
April 23."
    Chrysler and Renault said, "Given the complex nature of the
deal, the need for additional time was to be expected."
    The March letter of intent between the two companies says
that Chrysler could ask Renault to extend the agreement date
"in the event that prior to April 9, 1987, Chrysler discovers
an unforeseen problem in the course of its 'due diligence'
investigation of the company," referring to American Motors.
    A Chrysler spokeswoman would not say whether some problem
had cropped up in the talks. She stuck by the company's
statement that more time was needed because the talks are
complex. "That is our definition of the delay," she said.
    Under the previous agreement between Chrysler and Renault,
their letter of intent would be terminated on April nine or
when an agreement was reached. But the letter could be amendend
by a written agreement by both companies.
    The Chrysler spokeswoman said, "We are still working toward
a definitive agreement." Said another Chrysler official who is
not part of the talks but who would be told if the deal were in
trouble: "There are no glitches."
    Analysts also downplayed the significance of the delay. "I
can't visualize where they wouldn't want it to be done," said
Donaldson Lufkin Jenrette analyst Richard Henderson.
 Reuter
