With private-equity investors reported to be hungry for the prize, DaimlerChrysler could net up to 9 billion euros for the sale of its US division Chrysler, a German newspaper said Saturday. Welt am Sonntag, releasing news to appear in its Sunday edition, quoted sources close to the negotiations as saying the sale could yield 'between 6 billion and 9 billion dollars,' well ahead of earlier estimates. The Goldman Sachs investment bank had earlier forecast bids would top out at around 6 billion euros. Private-equity firm Cerberus Capital Management lodged a bid for Chrysler on Friday, the newspaper said. Cerberus was reported to see the key value in Chrysler's financial services division.
Mike Skinner started on the pole and stayed out front virtually all day at Martinsville Speedway on Saturday, leading all but seven of 253 laps to win his third consecutive NASCAR Craftsman Truck Series race. Coming off victories at California and Atlanta, Skinner set a series record by leading 246 laps and won for the 22nd time in his career. He became only the second driver in the series to win twice on the small, tight oval at Martinsville. "This was about as good as it gets right here," he said in Victory Lane.
Skinner beat Todd Bodine to the finish by 0.527 seconds after the 15th caution of the race brought about a two-lap dash to the finish in overtime. In all, the race went 253 laps, and 85 of them were run under a yellow flag because of numerous accidents. Each restart, however, only reinforced that Skinner's Toyota was the truck to beat. Series champion Bodine ran second in another Toyota, but never really challenged for the lead. "His truck was just incredibly strong the whole race," Bodine said. Skinner grew weary of the cautions, but appreciative of Bodine's style.
Mike Skinner had just secured the victory when his crew chief, Jeff Hensley, boomed over the radio: "We're going for No. 4 at Kansas." No rest for the dominating.
The win is Skinner's 22nd of his career. Ironically, Bodine was the last series driver to win three in a row, in the final three races of 2005. "That was cool, wasn't it? The thing just hauled butt all day," said Skinner, who leads the series standings by 94 points over Bodine. "I remember a couple years ago these Toyotas wouldn't run on short race tracks."
The only time Skinner didn't lead was during pit stops early. Even when Bodine used pit strategy to get better track position, he moved into second but couldn't close on Skinner.
DaimlerChrysler AG is expected to narrow the list of bidders for Chrysler to one or two finalists very soon, possibly in the next few days ahead of the April 4 annual shareholders meeting, Detroit Free Press newspaper said, citing people familiar with the talks. Once that happens, due diligence and negotiations that would perhaps last for months will follow to hammer out details and the sale price, it added. It said what is all but certain at this point is DaimlerChrysler (nyse: DCX - news - people ) will sell all or part of the Auburn-Hills-based US operations as Daimler's stock price has shot up more than 25 pct since Feb 14.
Auto Unions Plan United Front On Plans for Chrysler's Future
By Gina Chon
As potential buyers prepare to submit bids for the Chrysler Group, the unions of the United Auto Workers and the Canadian Auto Workers agreed Thursday to work together to present a united front.
In the final hours before potential buyers must submit bids to DaimlerChrysler (DCX) for its ailing Chrysler Group unit, private equity group Cerberus Capital Management has decided to go it alone, instead of bidding together with Canadian auto supplier Magna International (MGA), sources close to Cerberus and Magna say. Sources say the two sides couldn't come to terms on how they would structure a deal, and that Magna Chairman Frank Stronach wanted more control over a transaction than Cerberus would permit.
Meanwhile, Magna, which has a front seat at the bidding table, is interested in a minority stake in Chrysler and is teaming up with a private equity player. KeyBanc Capital Markets analyst Brett Hoselton said earlier this week that Magna has picked a private equity partner, and a source close to Magna says the company is linked with New York-based Ripplewood Holdings. Many industry watchers have questioned whether a bid from Magna makes sense. While the company has experience running car plants, it has not engineered complete models and taken them to market.
I am a Dodge Ram Craftsman Truck Series Fan. Consequently, Daimler-Chrysler's considering selling Chrysler, makers of Dodge trucks, concerns me. What will the impact on truck racing be? The latest is that Magna, a major parts supply corporation may buy Chrysler.
Finally, here's a rumor swirling around the financial press that makes a bit of sense. Magna International, a Tier 1 Canadian parts supplier, is looking at buying Chrysler Group. It's unconfirmed, of course, but its more plausible than a GM-Chrysler hookup.
Still. It comes down to whether DaimlerChrysler chief Dieter Zetsche is willing to unload Chrysler at a fire-sale price. Automotive News reports this week that Chrysler, Dodge and Jeep is worth maybe $15 billion. Chrysler's unfunded health care debt wipes out that value and then some. But if you throw in other assets, like land and a financing company, Chrysler might be worth a few billion dollars to private investors or to a Chinese company.
So why would Magna make sense? It doesn't, really. It just makes more sense than other buyers. Magna counts virtually every major automaker as a customer, from building the new Chrysler minivan's seat systems to assembly of the Saab 9-3 convertible. In 2004, it bought DaimlerChrysler's New Venture Gear, builder of four- and all-wheel-drive components, and in 2005 hired away top GM exec Mark Hogan as its president.
Analysts have considered it inevitable that strong suppliers - and Magna and its European partner Steyr are two of the few strong ones - will someday build their own cars. Magna says it has no long-term plans to become a full-fledged automaker (perhaps it has short-term plans?).
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