Possible Chrysler deals involve GM, Canadians

FRANKFURT, Germany — General Motors Corp. reportedly may be interested in giving an equity stake to DaimlerChrysler AG in exchange for its struggling Chrysler unit. Separately, an analyst said he understands a large Canadian auto parts supplier may be studying a Chrysler purchase.

Russia's second-biggest automotive company denied that it was interested in the Chrysler business.

The speculation about possible deals for Chrysler is the latest that has surfaced since DaimlerChrysler Chairman Dieter Zetsche said Feb. 14 that all options are on the table for the money-losing Chrysler business, and he would not rule out a possible sale.

The Financial Times reported Monday that DaimlerChrysler was considering a 20 percent stake in GM in the form of a payment if a deal to sell Chrysler were to go forward.

The Financial Times, citing people familiar with the situation, said DaimlerChrysler was weighing the possibility of trading Chrysler for the GM stake but added it was also considering a cash sale to private equity firms, including Apollo Management LP, Blackstone Group, Cerberus Capital Management LP and Carlyle Group, among others. All four have refused comment.

DaimlerChrysler did not comment on the report, reiterating its previous stance that all options for Chrysler are being considered. GM also said it would not comment on what spokesman Tony Cervone called speculation.

Also on Monday, KeyBanc analyst Brett Hoselton said in a note to investors that his sources tell him Magna International Inc. is seriously considering a purchase of Chrysler Group. Hoselton said senior Magna executives have obtained Chrysler financial information, visited Chrysler facilities and met with United Auto Workers leadership.

A Magna spokeswoman confirmed that Chairman Frank Stronach has met with Zetsche. However, spokeswoman Tracy Fuerst would not say when the meeting took place.

She said Stronach and other Magna executives meet with auto company executives regularly as part of their normal course of business.

Fuerst would not comment on reports that the meeting took place on Feb. 14, the day DaimlerChrysler announced that it was seeking partners for Chrysler.

Hoselton also said in his report that he thinks a Magna purchase of Chrysler is possible but unlikely.

On Friday, a senior Chrysler official told The Associated Press that the company is giving detailed financial information to selected potential suitors and is working with its investment bank, JPMorgan Chase & Co., to avoid divulging sensitive information.