Large Private Equity Meets With Chrysler

The Detroit News is reporting two private equity firms are in the process of meeting with Chrysler offer a potential buyout of the automaker. Parent DaimlerChrysler announced its Chrysler North American unit is for sale but has thus far had trouble attracting potential bidders. The News believes meetings with large potential bidders Cerberus Capital Management and Blackstone Group signal "the sale process for Chrysler is entering a critical phase." If Chrysler continues to have trouble attracting bidders, or those bidders value the automaker at a significant discount to what DaimlerChrysler is looking for, Daimler may be forced to hold Chrysler despite its continued losses. In addition, Reuters is reporting from two anonymous sources that a detailed sales prospectus for potential bidders will be completed soon, the first step toward a potential sale.

Sources: Detroit News, Reuters
Commentary: GM Vehicle Sales, U.S. Market Share Rise; Japan's 'Big 3' Continue to Roll • Chrysler's Future Remains Uncertain • Financial Times: Chrysler Considering An All-Equity Deal With GM
Stocks/ETFs to watch: DaimlerChrysler (DCX). Competitors: Ford (F), General Motors (GM), Toyota (TM), Honda (HMC), Nissan (NSANY)

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

Comments

[hussein:]

selling a used car has never been easy...now they know how we feel!

2007 Mar 06 03:54 PM