Reported on Dealbreaker's Opening Bell
Daimler mulls GM stake to pay for Chrysler unit (Reuters)There continues to be a lot of chatter about the fate of Chrysler, although it doesn't sound like anything is even close to certain. Apparently, the idea that it might go to GM in some way is still on the table, and that GM might pay for the unit by giving Daimler an equity stake in itself. Again, this is all just rumor (this particular one originated at the Financial Times). So, in other words, GM would like Chrysler, but not if it means actually paying money for it. Giving up an equity stake is much more palatable.
Dealbreaker's Joe Wiesenthal was abnormally unsarcastic about this news item. Personally, I'm not entirely clear how trading Chrysler in exchange for equity in GM would be a win for Daimler.
It would be a win for the lawyers and the bankers, to be sure, but wouldn't Daimler be clearing one lame duck off their books, only to be saddled with a new one?
Monday, February 26, 2007
More idle rumors about Daimler-Chrysler and General Motors
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