Daimler mulls GM stake to pay for Chrysler unit: report

Bizarre is one word to describe this

Daimler mulls GM stake to pay for Chrysler unit: report
http://money.cnn.com/2007/02/25/news/companies/diamlergm.reut/index.htm?postversion=2007022520

LONDON (Reuters) -- DaimlerChrysler AG is thinking about taking a minority
stake in General Motors Corp. as payment for Chrysler if a deal between the
automakers takes place, the Financial Times said on Monday.

Such an all-share option was being weighed up by the firm, the newspaper
said, citing people familiar with the situation.

Chrysler offers details to job-cut plan
Other possible options included a sale of DaimlerChrysler's struggling U.S.
arm to private equity or industry investors, and a flotation of Chrysler,
according to the FT.

"They are interested in who takes Chrysler over and they would be happy to
take equity in GM in return," the FT quoted an unnamed leading shareholder
as saying. The shareholder was citing talks with DaimlerChrysler's (Charts)
senior managers, it said.

Chrysler: No immediate decision on sale seen
Chrysler Group Chief Executive Tom LaSorda told employees last week it might
take months before questions about a possible sale of the unit could be
answered.

Sources familiar with the situation told Reuters earlier this month that GM
(Charts) had conducted preliminary talks with Chrysler aimed at an
acquisition or a strategic alliance.

 

Wow! GM stock would be as close as you can get to absolutely nothing. MB
would be giving Chrysler away. On the other hand, if Chrysler loses money
in the short term, it would also increase GM's immediate losses.

I guess you could say that's a deal where both parties got taken.