Three firms lead efforts to buy Chrysler, report says

March 14, 2007

Detailed reviews of Chrysler Group have begun by the Canadian auto parts giant Magna International Inc., Cerberus Capital Management LLC and a team of two other leveraged-buyout firms, Blackstone Group and Centerbridge Partners LP, according to Bloomberg, citing sources familiar with the discussions.

Chrysler’s German parent, Daimler-Chrysler AG, is considering a sale of its American unit because it continues to struggle to make money.

Weak demand for gas-guzzling pickup trucks and sport-utility vehicles along with expensive pension obligations have prompted analysts to estimate the unit’s value at $3 billion to $5 billion.

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