• October 31, 2008

More speculations about Chrysler, Nissan possible deal

The Detroit News reports that Nissan is considering acquiring 20% percent of Chrysler and this move would bring the company into the ranks of the present Renault-Nissan alliance.

According to sources close to the negotiations, the offer is placed before Cerberus Capital Management that is a private equity firm and hold 80 percent share of Chrysler currently. The company also has another offer from General Motors.

Nissan refused to comment on that report. Nissan spokesman Simon Sproul said: “This is somewhat the same noise and we don’t want to make any comment on recent speculations.”

The same report in the newspaper also indicated that Cerberus CEO founder Stephen Feinberg is more willing to have a deal with General Motors.

Many analysts are somewhat unenthusiastic on the idea of a Chrysler-GM merger and saying that this move wouldn’t make a good difference for any of these companies, but they agreed that it might bolster consumer confidence.

Takeshi Osawa, who is a senior fund manger at Norinchukin Zenkyoren Asset Management said : “ It is quite difficult to see the benefit at the time when the worldwide auto market has slowed down.I can’t say with certainty that Nissan can afford to make such a deal. It can affect negatively on its shares.”

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