Talks Between GM, Renault and Nissan Fail

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G.M.’s Talks on a Partner Fall Apart (NY Times)

Summary: Talks between General Motors (GM), Renault and Nissan (NSANY) about a potential alliance fell apart yesterday after Nissan refused to make "dowry" payments to its American counterpart in return for a stake in G.M. Although the deal would have benefitted the European and Japanese companies, Renault's Carlos Ghosn called the idea 'ridiculous,' especially since the market value of his company was higher than GM's. GM CEO Richard Wagoner commented that working with three companies could slow down GM. Mr. Wagoner now needs to mind Kirk Kerkorian, the largest indvidiual GM shareholder, who pushed for the alliance talks in an attempt to raise GM's share price. Renault and Nissan might approach Ford (F) as another potential alliance partner.
Related links: Full article • GM/Nissan-Renault Alliance Talks 'Bog Down' • Message to GM Investors: Whoa! • Reuters: Renault-Nissan door open for Ford, analysts wary
Potentially impacted stocks and ETFs: iShares Dow Jones Transportation Average (IYT), Ford (F)

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