Saturday, October 11, 2008

GM Negotiating For Chrysler. Wait, What!?

So the WSJ and NYT reports, and pointed out by Calculated Risk.

Calculated Risk: GM to Acquire Chrysler?

The WSJ reports that GM has recently talked with Cerberus about acquiring Chrysler's automotive operations in exchange for GM's remaining 49% stake in GMAC.
Cerberus would keep Chrysler's financing arm - and probably would combine it with GMAC.

As I'm fond of saying about airline mergers: great, after they merge they can plunge into bankruptcy together. Now there's a synergy for you!

I suppose we ought not to be surprised that it didn't take Cerberus long to decide that the carmaking business wasn't what they hoped for, and to seek an exit back to straight finance, which I expect they have a clearer understanding of.

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1 comment:

Flatland Pastor said...

And then there were two....