Much as DaimlerChrysler may want to wrap up a sale of its North American Chrysler unit by the summer, before negotiations between the Big Three and the United Auto Workers [UAW] union begin, it may not be able to. According to an article in today's Wall Street Journal, legal requirements related to the sale may slow down the sales process to a much slower pace than DaimlerChrysler is hoping for. The UAW and representatives of Tracinda Corp. met yesterday to discuss a possible takeover of Chrysler, though Tracinda's $4.5 billion takeover bid has yet to be taken seriously by DaimlerChrysler. For its part, UAW Local 12 group has opposed DaimlerChrysler's proposed sale of its North American unit, urging the company to endorse an employee-stock-ownership plan [ESOP], granting employees the ability to buy 70% of Chrysler. Tracinda's proposal allows for partial employee ownership, in exchange for waving certain future benefits. DaimlerChrysler CEO Dieter Zetsche will meet with the UAW on Tuesday to discuss progress in the sale of Chrysler.
Sources: Wall Street Journal, Forbes
Commentary: Chrysler Roundup: Second Round of Bids Due; UAW Opposes Sale • Kirk Kerkorian To Be Left Out of Chrysler Negotiations - WSJ • DaimlerChrysler Beats Competitors, CEO LaSorda On Track
Stocks/ETFs to watch: DaimlerChrysler (DCX), Magna International (NYSE:MGA). Competitors: General Motors (NYSE:GM), Ford (NYSE:F), Toyota (NYSE:TM), Honda (NYSE:HMC), Nissan (OTCPK:NSANY)
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