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Report: DaimlerChrysler Considering All-Stock Sale of Chrysler to GM

DaimlerChrysler is weighing an all-stock sales option of Chrysler to GM, according to a report in the Financial Times. The other major rumored possibility for decoupling Chrysler from DaimlerChrysler is a cash sale to a private equity group or investors. (Earlier post.)

DaimlerChrysler senior managers would be happy to take equity in GM in return for the sale, according to a leading shareholder familiar with the discussions cited by the FT.

An all-stock sale would obviate the need for GM, with financial problems of its own, to raise new cash under the unfavorable conditions of its junk debt status.

At least two of DaimlerChrysler’s institutional shareholders—which as a group are angry about the losses at Chrysler—have told management they like the idea of an all-equity deal.

Neither company has confirmed that a sale is under discussion.


Harvey D.

Assuming that losing GM takes control of losing Chrysler thru a share swap with MB, would GM close most local Chrysler plants to reduce competition?

How many ex-Chrysler users would buy GM gas guzzlers and how many would switch to more efficient vehicles from Toyota, Honda, Renault-Nissan etc?

Toyota and Renault have already merged with competitors with noticeable success. Can GM do likewise?

What will happen to Ford....merge with or sell to Toyota?

Toyota could bring a lot more to Ford than GM to Chrysler.

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