DCX to swap Chrysler Group for stake in GM?

[DetroitNut90]

DaimlerChrysler shares edged higher Monday on a news report that the automaker was considering taking a stake in General Motors Corp. in exchange for its struggling Chrysler unit. Meanwhile, Russia's second-biggest automotive company denied that it was interested in the Chrysler business. Earlier this month, DaimlerChrysler Chairman Dieter Zetsche said all options are on the table for the money-losing Chrysler business and he would not rule out a possible sale. The Financial Times reported Monday that DaimlerChrysler was considering a move that would see it take a stake in GM in the form of a payment were a deal to sell it Chrysler were to go forward. GM is the world's biggest automaker, but has been losing market share at home and is undergoing a massive restructuring that includes closing plants and shedding jobs. The newspaper, citing people familiar with the situation, said DaimlerChrysler was weighing the possibility of trading Chrysler for the GM stake, but added it was also considering a cash sale to private equity firms, including Apollo Management LP, Blackstone Group, Cerberus Capital Management LP and Carlyle Group, among others. DaimlerChrysler AG did not comment on the report, reiterating its previous stance that all options for Chrysler are being considered.

Detroit News

Edited February 26, 2007 by DetroitNut90

[Intrepidation]

So Daimler, having not been satisfied with f@#king up Chrysler, wants to suck the life out of GM and f@#k it up (more) now?

Edited February 26, 2007 by Dodgefan

[NOS2006]

So Daimler, having not been satisfied with f@#king up Chrysler, wants to suck the life out of GM and f@#k it up (more) now?

That's exactly what I thought. Theoretically, this is very possible, wouldn't you say?

[Dragon]

so to get rid of their struggling American brand, they'd get in bed with another struggling American brand? who incidentally, would be struggling even more once they take over the first struggling American brand.

I need to go lie down. my head hurts

[vrazzhledazzle]

Wow, GM seems to be the only automaker left 'interested' in buying Chrysler.

I don't know this so I'm asking you guys: If DCX were to get the same kind of cash from a private equity firm or an automaker, which one would they sell Chrysler to?

[NOS2006]

so to get rid of their struggling American brand, they'd get in bed with another struggling American brand? who incidentally, would be struggling even more once they take over the first struggling American brand.

I need to go lie down. my head hurts

Are you hoping Daimler joins you? lol

[Northstar]

I will be very surprised if this happens. There's no way GM let's Daimler take a stake in GM. Maybe GM is taking a stake in Chrysler, but not buying all of it, and someone got confused and we ended up with this report.

[AxelTheRed]

I'm going to quit worrying about the fate of Chrylser Group until the bosses in Germany give any definitive answer.

[vrazzhledazzle]

I will be very surprised if this happens. There's no way GM let's Daimler take a stake in GM. Maybe GM is taking a stake in Chrysler, but not buying all of it, and someone got confused and we ended up with this report.

Hopefully

[ZL-1]

I will be very surprised if this happens. There's no way GM let's Daimler take a stake in GM. Maybe GM is taking a stake in Chrysler, but not buying all of it, and someone got confused and we ended up with this report.

Since I am willing to bet GM won't write a USD 10bn-15bn check just like that, a GM-buys-Chrysler deal would have to be part cash, part equity, and that would mean Daimler would get a GM stake.

I don't think they're confused, btw: they're just reporting the proverbial 'word on the street'.