Report: Activity heats up in possible Chrysler sale

Automotive News / March 13, 2007 - 4:00 am

NEW YORK (Reuters) -- The pace of activity around a possible sale of the Chrysler group is accelerating, after several potential buyers met with management before presenting preliminary offers by the end of the month, the Wall Street Journal reported.

DaimlerChrysler is hoping to narrow the list of serious buyers so its management team can give an update on a possible sale during DaimlerChrysler's general shareholders meeting in Berlin on April 4, according to people familiar with the matter, the newspaper reported.

The interested private-equity firms include Cerberus Capital Management LLC and a group led by Blackstone Group and Centerbridge Partners LP, according to the newspaper.

All three met with Chrysler management last week and signed confidentiality agreements to pave the way to reviewing detailed financial and product-development information on the automaker, people familiar with the matter said, the newspaper reported.

Canadian auto parts maker Magna International Inc. is also interested in buying all or part of Chrysler, possibly in partnership with a private-equity firm, and has met with representatives of both the United Auto Workers and Canadian Auto Workers to discuss a deal, one of these people said, the newspaper reported.

General Motors has also considered buying Chrysler, but a takeover of its cross-town rival is considered unlikely, people familiar with the matter said, the newspaper said.