The interest continues...

[ozpont]

Just received from AusMonza..

Topic of some mixed aquisition interest by GM in Chrysler.. . and interestingly behind this is the Want by Mercedes to offload Chrysler as its US based cost structure is killing is percentage profits /per car up against new plants and plans it has for production facilities in third world countries.

... http://jalopnik.com/cars/news/general-motors-provides-no-comment-on-chrysler-acquisition-rumors-236660.php

[ozpont]

Daimler Tilts Toward a Sale .....

Momentum within DaimlerChrysler AG appears to be moving toward a sale of its Chrysler Group unit, according to people familiar with the matter, though such a decision is far from certain and the company cautioned it will have little to say on the matter at next week's annual meeting.

DaimlerChrysler shareholders will get a chance on April 4 in Berlin to confront Chief Executive Dieter Zetsche with questions about Chrysler's future. But yesterday, people close to the company said Mr. Zetsche isn't planning to discuss a possible Chrysler deal in any detail. "Don't hold your breath," DaimlerChrysler spokesman Han Tjan said.

Prospective bidders for Chrysler include private-equity firm Cerberus Capital Management LLC, the private-equity tandem of Blackstone Group and Centerbridge Partners LP, and Canadian auto-parts maker Magna International Inc.

General Motors Corp. had expressed interest in Chrysler earlier this year, but people familiar with the situation say now that GM appears to have backed away. These people said DaimlerChrysler first approached its U.S. rival about a deal in January, but GM is now watching the process to see whether a sale to private-equity investors could make pieces available for purchase.

Even if DaimlerChrysler decides to sell the operations, it would likely take weeks or months of negotiations and due diligence to reach a deal. Proposals from potential buyers are expected to go in Friday, said people familiar with the matter. By the second round, an exclusive negotiating partner will be chosen for talks targeted for completion by late May or early June, these people said.

People familiar with the situation say Mr. Zetsche has formed two teams to weigh Chrysler's future. One team is focused on DaimlerChrysler's previously announced plan to overhaul Chrysler. The other is focused on finding a buyer or partner for the unprofitable unit.

DaimlerChrysler's share price has soared since Mr. Zetsche's Feb. 14 announcement confirming that the company was considering selling Chrysler so it could focus on expanding its profitable Mercedes-Benz luxury-car business.

The shareholder meeting is expected to be contentious, as investors who advocate a sale of Chrysler have submitted more than a dozen proposals that the board opposes, including the elimination of Chrysler from the name DaimlerChrysler.

DaimlerChrysler also said that it won't announce first-quarter earnings results until May 15 because of a change in accounting and financial reporting to the international financial reporting standards from U.S. standards. The company had planned to announce the results on April 26.

Separately, the head of Chrysler's largest union, United Auto Workers President Ron Gettelfinger, used a speech to about 1,500 UAW delegates at a convention in Detroit to blast private-equity investors who seek to profit by "stripping and flipping" auto companies. Mr. Gettelfinger said the potential sale of Chrysler has caused apprehension in the UAW ranks ahead of national contract talks with Detroit's three big unionized auto makers this fall. The union has a seat on DaimlerChrysler's supervisory board,the equivalent of a U.S. company's board of directors.

Mr. Gettelfinger also said he is "disappointed" at what he indicated is a standstill in negotiations with auto-parts maker Delphi Corp. He warned the union will strike if Delphi moves to void labor contracts through bankruptcy-court proceedings.

Since October 2005, when the parts supplier filed for Chapter 11 bankruptcy protection, the UAW and Delphi have tried to re-negotiate a 2003 contract to help lower the company's labor costs. "I'm through with that," he said.

Delphi spokesman Lindsey Williams said discussions continue with the UAW, GM and a group of investors looking to take the supplier out of Chapter 11. He said its goal is to reach a consensual resolution.

"We have been in discussions, in negotiations, with the UAW and their senior leadership," Mr. Williams said. "Those discussions also include the senior leadership of GM and the plan investors. Those discussions have been ongoing."