- European Commission Objects to Sun Micro-Oracle Deal
- Obama Says Will Raise Currency Issue with China
- Can Apple Top Microsoft as Most Valuable Tech Firm?
- Buffett to Sell Stakes in Norfolk Southern, Union Pacific
- Cramer: 5 Stocks to Play the Next Bull Run
- Do You Know Your Coca-Cola Myths?
- Electronic Arts Beats Street, Announces 1,500 Job Cuts
- Time Is Here to Look at Overseas Stocks: Bill Gross
- Home Prices Start to Stabilize In the US as Sales Pick Up
- Why Google is Paying $750 Million for Ad Mob
- Warren Buffett to Sell Stakes In Union Pacific & Norfolk Southern
- Nov. 9: Unusual Volume Leaders
- The Battered Businesses Behind Housing
- Modern Warfare 2's Record-Breaking Launch
- Merck’s Mega-Monday Morning
- Why are Traders Bullish on This Food Company?
- Profiting From Natural Gas: Strategists
- S&P Stocks Trading at New 52-Week Highs
MOST SHARED
- Future of Marketing
- Oil Tomorrow
- Dow Up Over 100 After G20 Stimulus Pledge
- Obama Says Will Raise Currency Issue with China
- Priceline Crushes Profit Forecasts; Shares Jump
- Can Apple Top Microsoft as Most Valuable Tech Firm?
- Maria's Market Message
- A Year on, China's Stimulus Postpones its Problems
- Trial of Ex-Bear Stearns Managers Goes to Jury
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
- Do free market libertarians really believe what they say about ethics and shareholder value? The Big Money takes a look.
- Cramer did the research and found eight stocks that lead the pack. Read on to get his top picks.
- On the anniversary of the fall of the Berlin Wall, many in the former Eastern Bloc recall communism fondly.
- Software, biotech firms, even banks are watching a particular Supreme Court argument today.
- From politicians to CEOs to companies, here's your chance to vote for the winners and losers of 2009.
- A new sinister Internet viruses can turn you into an unsuspecting collector of child pornography.
Data is a real-time snapshot *Data is delayed at least 15 minutes