After months of waffling on whether it was going to bid on Chrysler Group, Magna International Inc. has officially confirmed its involvement in the potential sale of the struggling automaker.

"Magna International Inc. today confirmed that it continues to review potential alternatives regarding the future of the Chrysler Group," the company said in a brief statement, although it warned that no deal might come out of Magna's involvement.

In late March, the Aurora, Ont.-based auto parts maker was said to have teamed up with a private equity group to make a bid of approximately US$4.7 billion for the Chrysler automobile group, according to a report by U.S.-based analyst Brett Hoselton.

Magna and its partner have written a joint letter of interest containing an offer for roughly US$4.6 billion to $4.7 billion, "with the supplier looking to take a 20- to 25-per-cent stake," Mr. Hoselton said in a note to clients.

"While (Magna) views its offer as unlikely to prevail, the company also sees it as an opportunity to purchase an inexpensive stake in the auto maker should other bidders retreat," the note continued.

Interested purchasers have valued Chrysler at between $5 billion and $6 billion, said Mr. Hoselton.

The auto parts maker has hinted at buying the money-losing business from parent company DaimlerChrysler AG since late February. Magna's biggest competition appears to come from private equity firms such as Cerberus Capital Management and another entity involving Blackstone Group LLP and Centerbridge Capital Partners LP.