IACOCCA, TYCOON PLOT CHRYSLER TAKEOVER

Former Chrysler Chairman Lee Iacocca wants his company back. He and billionaire investor Kirk Kerkorian are attempting to buy the No. 3 automaker for $22.8 billion. Their lavish, unsolicited $55 per share proposal -- more than 40 percent above yesterday's closing stock price -- would be the biggest U.S. corporate takeover since the $25 billion buyout of RJR Nabisco by Kohlberg Kravis Roberts in 1988. Today's surprise announcement boosted Chrysler stock and prompted Chairman Robert Eaton to scrap a scheduled New York auto show speech.TIME Detroit bureau chief William McWhirtersays Chrysler is well positioned to fight a takeover because of its profitability, as well as Eaton's financial acumen. Nevertheless, McWhirter says the announcement sent shock waves through a U.S. industry that has never before been targeted by such a bid. Kerkorian already owns 10 percent of Chrysler. Iacocca, 70, said he does not want to go back into management. As for their plans for the firm, a press release provided by Kerkorian and Iacocca indicated that they would like to expand more aggressively into overseas markets.