GM, Chrysler Merger?

By Michael Snowden

Published: Sat, October 11, 2008 - 12:13 pm Last Updated: Sat, October 11, 2008 - 12:16 pm

Short URL: http://wkrg.com/a/19906/

DETROIT (AP) -
General Motors and Chrysler have reportedly held talks about a
possible merger or other acquisition. A person familiar with the
talks says they involve Cerberus Capital Management, which owns 80
percent of Chrysler and also has a joint venture with GM.
Besides merger negotiations, The Wall Street Journal reports
that Cerberus is proposing trading Chrysler's automotive operations
to GM in exchange for GM's remaining 49 percent stake in GMAC
Financial Services. Cerberus already owns the other 51 percent.
The Journal says the talks, which began more than a month ago,
have stalled because of the turmoil in financial markets. The New
York Times says its sources say chances of a merger are "50-50."

(Copyright 2008 by The Associated Press. All Rights Reserved.)