GM in merger talks with Chrysler

http://www.marketwatch.com/news/story/general-motors-held-merger-talks/story.aspx?guid={D5E4EB2A-6C47-4007-9CA0-9BDDFAC28366}&dist=hplatest


General Motors held merger talks with Chrysler: reports
By Alexander Davis
Last update: 11:37 p.m. EDT Oct. 10, 2008

SAN FRANCISCO (MarketWatch) -- General Motors Corp. reportedly has held preliminary talks to acquire Chrysler LLC, against the backdrop of an increasingly bleak decline for the auto industry. Reports on Friday night by The Wall Street Journal and the New York Times both cited unnamed people familiar with discussions between the two U.S. automakers. GM has been in talks with Cerberus Capital Management LLC, which owns 80.1% of Chrysler and 51% of GMAC, an 89-year-old auto lender that has suffered from its foray into mortgage banking. Cerberus proposed a swap in which GM would acquire Chrysler's automotive operations, and in turn give Cerberus its remaining 49% stake in GMAC, the Journal reported.