Private equity groups eye Chrysler

By James Politi in New York and John Reed in London

Published: February 23 2007 00:26 | Last updated: February 23 2007 00:26

At least four private equity groups have been in preliminary talks with DaimlerChrysler about buying Chrysler, and could emerge as bidders in the auction for the German carmaker’s US subsidiary.

According to people familiar with the matter, Apollo Management, Blackstone, Carlyle, and Cerberus Capital Management - as well as several European firms - were contacted about their potential interest in acquiring Chrysler before last week’s announcement by DaimlerChrysler that “all options are on the table” for the unit. Those discussions continued after the announcement, these people said.