GM-Chrysler Deal Said To Be Coming Soon
AP) Speculation continued to swirl Monday that a deal for General Motors Corp. to buy Chrysler LLC from New York private equity firm Cerberus Capital Management LP could come soon.Both sides have been talking for months, but the pace recently has increased. A person familiar with the negotiations told The Associated Press Friday that officials were trying to work out a deal by the end of the month.
Cerberus wants out of the auto business. And as the credit markets have dried up, GM, worried about running too low on cash before the U.S. auto market rebounds, wants Chrysler’s currency stockpile.
The person said that the talks have advanced to the point where top executives of both companies have looked at a deal and asked for refinements. The person spoke on condition of anonymity because the talks are secret.