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Three Suitors Expected To Bid For Chrysler-Report

Reuters
Friday, 30 Mar 2007 | 2:41 PM ET

DaimlerChrysler is expected to receive bids from three potential buyers for its U.S.-based Chrysler division, the Detroit News reported on Friday.

Private-equity giants Blackstone Group and Cerberus Capital Management as well as the Canadian auto supplier Magna International are expected to bid for Chrysler, the newspaper said, citing people close to the process.

Blackstone, which is teaming with Centerbridge Partners, was preparing to present its bid as soon as Friday though no formal bids had been received as of late Thursday, the report said, citing people familiar with the situation.

Han Tjan, a spokesman for DaimlerChrysler , declined to comment.

All of the bids likely will be received by DaimlerChrysler's investment banker, JP Morgan Chase, before the German automaker convenes its annual shareholders meeting Wednesday in Berlin, the newspaper said.

Officials at Blackstone and Centerbridge have privately voiced support of Chrysler CEO Tom LaSorda and his executive team. People close to the discussions said Blackstone prefers to install a hands-on board of directors to supervise a turnaround rather than shaking up management, according to the newspaper.

Chrysler, the No. 4 U.S. automaker and home to the Jeep, Chrysler and Dodge brands, was put into play in mid-February, when DaimlerChrysler Chief Executive Dieter Zetsche announced that the company was keeping all options open for the unit.

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