Overclocker
04-06-07, 07:41 AM
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Ask Dr. Z: Dieter Zetsche made it official when he told shareholders the Chrysler half of the DaimlerChrysler "merger of equals" is for sale.
Date posted: 04-04-2007
BERLIN — DaimlerChrysler boss Dieter Zetsche bowed to pressure Wednesday, confirming publicly for the first time that the company is in talks with potential buyers interested in purchasing its financially embattled Chrysler Group, which includes the Chrysler, Dodge and Jeep brands.
Speaking at DaimlerChrysler's annual shareholder meeting in Berlin, Zetsche indicated that a number of suitors have already shown a "clear interest" in Chrysler since a February 4 announcement that the company would explore all strategic options of its money-losing U.S. unit, including a possible sale. However, he stopped short of providing details of the talks or the identity of the parties involved, saying all options were open.
"I can confirm that we are talking with some potential partners who have shown a clear interest [in the purchase of Chrysler]," he told DaimlerChrysler shareholders in introductory remarks to announce the company's 2006 financial results, adding, "It is also true that we need to keep all options open, and that I cannot disclose any details, because we need to have the maximum scope for maneuver."
Commenting on the heavily cloaked nature of the talks surrounding the possible sale of Chrysler, Zetsche said it would be "irresponsible" to provide any more details at this time, suggesting DaimlerChrysler is seeking "the greatest possible flexibility to implement the best possible action."
He did suggest, however, that he is pleased with the progress being made, telling shareholders: "So far, I am satisfied with the process. Everything is going according to plan."
Zetsche indicated that, whatever option is taken with Chrysler, it will require that turnaround plans implemented earlier this year be continued. He also suggested that Mercedes-Benz may seek to continue cooperation with Chrysler even if it is sold, but only if it "makes financial sense for both sides."
Zetsche's unexpected confirmation of talks that could lead to the sale of Chrysler comes as rumors begin to swirl about a possible hostile takeover of DaimlerChrysler. For some months now, financially analysts have argued that without the sale of Chrysler, DaimlerChrysler could become a takeover target itself.
Daimler-Benz paid $37 million for Chrysler in 1998, calling it a merger of equals. Financial analysts suggest the company is worth no more than $10 million today.
What this means to you: Rumors no more. The for-sale sign is up at Chrysler, and all signs indicate that interest is running high.
Source: http://www.edmunds.com/insideline/do/News/articleId=120311#2
Ask Dr. Z: Dieter Zetsche made it official when he told shareholders the Chrysler half of the DaimlerChrysler "merger of equals" is for sale.
Date posted: 04-04-2007
BERLIN — DaimlerChrysler boss Dieter Zetsche bowed to pressure Wednesday, confirming publicly for the first time that the company is in talks with potential buyers interested in purchasing its financially embattled Chrysler Group, which includes the Chrysler, Dodge and Jeep brands.
Speaking at DaimlerChrysler's annual shareholder meeting in Berlin, Zetsche indicated that a number of suitors have already shown a "clear interest" in Chrysler since a February 4 announcement that the company would explore all strategic options of its money-losing U.S. unit, including a possible sale. However, he stopped short of providing details of the talks or the identity of the parties involved, saying all options were open.
"I can confirm that we are talking with some potential partners who have shown a clear interest [in the purchase of Chrysler]," he told DaimlerChrysler shareholders in introductory remarks to announce the company's 2006 financial results, adding, "It is also true that we need to keep all options open, and that I cannot disclose any details, because we need to have the maximum scope for maneuver."
Commenting on the heavily cloaked nature of the talks surrounding the possible sale of Chrysler, Zetsche said it would be "irresponsible" to provide any more details at this time, suggesting DaimlerChrysler is seeking "the greatest possible flexibility to implement the best possible action."
He did suggest, however, that he is pleased with the progress being made, telling shareholders: "So far, I am satisfied with the process. Everything is going according to plan."
Zetsche indicated that, whatever option is taken with Chrysler, it will require that turnaround plans implemented earlier this year be continued. He also suggested that Mercedes-Benz may seek to continue cooperation with Chrysler even if it is sold, but only if it "makes financial sense for both sides."
Zetsche's unexpected confirmation of talks that could lead to the sale of Chrysler comes as rumors begin to swirl about a possible hostile takeover of DaimlerChrysler. For some months now, financially analysts have argued that without the sale of Chrysler, DaimlerChrysler could become a takeover target itself.
Daimler-Benz paid $37 million for Chrysler in 1998, calling it a merger of equals. Financial analysts suggest the company is worth no more than $10 million today.
What this means to you: Rumors no more. The for-sale sign is up at Chrysler, and all signs indicate that interest is running high.
Source: http://www.edmunds.com/insideline/do/News/articleId=120311#2