GM may consider stock swap for Chrysler
27 Feb 2007
DaimlerChrysler is considering entering into a deal with General Motors that would involve swapping its money-losing Chrysler unit for a minority stake in its long-time rival, according to British media reports.
Daimler Chrysler, which has said all options are on the table, is looking at a stock swap along with other options including a sale to private equity or industry investors or a floatation, the Financial Times reported.
Both automakers have repeatedly declined comment since DaimlerChrysler set off a flurry of speculation on February 14 regarding the future of Chrysler, which has been hotly rumoured to include the outright sale of the division.
Several competitors, including Renault-Nissan, Toyota and Hyundai have said they have no interest in buying Chrysler. General Motors (GM), however, has neither confirmed nor denied the report.
