- US Home Prices Up 5th Month, 2nd Straight Quarter
- Revised GDP Reading Puts Growth at 2.8%; Inflation Tame
- FDIC Insurance Fund Falls to Negative $8.2 Billion
- US Economy Mired in 'Form of Depression': Rosenberg
- Strong Banks, Weak Credit: Treasury Rethinks TARP
- Fairfax Lawsuit Keeps Heat on Chanos, SAC's Cohen
- Weak Dollar Is Golden for Mining Companies
- How Many US Consumers Will Shop this Weekend?
- Galleon's Rajaratnam Denies Inside Trading Charges
- 8 Stocks That Could Gain With Rising GDP
- 5 Stocks That Benefit from Health Care Legislation: Analysts
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- HP's Mark Hurd
- HP Comes in As Expected; Is It Time to Buy?
- 9 Stocks That Play Rising Water Costs: Strategists
- Weis' Deal Likely Won't Change Big Money Contracts
- Gold Prices Can Double in 3 Years: Portfolio Manager
- Nov. 23: Unusual Volume Leaders
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- US Home Prices Up 5th Month, 2nd Straight Quarter
- Gold Will Collapse Like Oil Did in 2008: Charts
- China Eastern to Complete Shanghai Air Buy by End '09
- Why Amazon Rules Retail
- Wave of Debt Payments Facing US Government
- Weak Dollar Is Golden for Mining Companies
- Revised GDP Reading Puts Growth at 2.8%; Inflation Tame
- CA "More Profitable" After Saving Energy: CEO
Text Size 
Merger talks between General Motors and privately held Chrysler are moving at a faster pace as potential lenders have thrown their support behind a deal between the two U.S.-based automakers, CNBC has learned.
Chrysler CEO Robert Nardellli said he couldn't comment on market rumors or speculation, but noted that Chrysler has been open about looking for partners and creating alliances. He also conceded that the auto industry is ripe for combinations.
"If you look at the U.S. industry ... it certainly creates an environment for consolidation where you can get synergies of productivity that will allow you to be more competitive not just here in the U.S. but on a global basis."
Sources have told CNBC that GM and Chrysler plan to either reach a deal within the next two weeks or abandon the talks. The key to any deal: Getting GM to embrace whatever conditions Cerberus Capital Management, which owns Chrysler, is pitching.
No deal is assured at this time, and no details were available about how such a merger would be structured.
(See the accompanying video for CNBC's David Faber interview with Robert Nardelli.)
But people at both firms believe there would be big advantages to combining their equity. They also think a merged entity would find it easier to raise capital—possibly from the U.S. government.
The Detroit automakers would hope to receive expedited antitrust approval for any merger, sources said.
JPMorgan Chase [JPM
Loading...
()
], a big holder of Chrysler bank debt, is also pushing for the deal, the Wall Street Journal reported Thursday.
Meanwhile, French car maker Renault denied that it was in talks with Cerberus on possibly buying back the Jeep brand, which Renault sold to Chrysler along with American Motors in 1987.
-- Reuters contributed to this report
Print
Email
- Warren Buffett and Bill Gates discuss the economy and other subjects with CNBC's Becky Quick.
- …you'll want to be prepared. Tips for getting the most out of the post-Thanksgiving shopping frenzy.
- A new McDonald's in Manhattan is the nation's first to sport a sleek, chic interior imported from stores in London and Paris.
- One shopper explains why he gets up at 3am on the day after Thanksgiving to go shopping every year.
- A diet high in fat and sugar might actually be good for your portfolio.
- From the AIG&T to the Merrill Lychee, Jane Wells lists this year's holiday cocktails.
Data is a real-time snapshot *Data is delayed at least 15 minutes