Monday, October 20, 2008

GM-Chrysler push for quick deal -

GM-Chrysler push for quick deal - "Negotiators hope to finalize a merger agreement between General Motors (GM) and Chrysler before the presidential election and are lobbying for government financial assistance to help clinch the deal, says a source who has been briefed on the talks.

They are pointing to the impact on the U.S. economy if either company were to fail, compared with the viability of a merged colossus that would control 36% of the U.S. auto market. Those are the chief selling points in asking for government help, says the source, who did not want to be identified because talks are not public.

Cerberus Capital Management, which controls Chrysler, has been pushing to make GMAC, GM's financing arm, a significant part of the deal. Cerberus already owns more than 50% of GMAC but wants it all. The source says that's been a sticking point because GM has said it won't give up its stake."


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