General Motors will not bid for Chrysler: paper

LONDON Tue Mar 27, 2007 8:17pm EDT

File photo shows the rear logo on the 2007 Chrysler 300C during the Chicago Auto Show, February 7, 2007. General Motors Corp. will not make a first-round bid for DaimlerChrysler AG's Chrysler unit, leaving just private equity firms and an auto parts supplier in the running, the Times reported on Wednesday. REUTERS/John Gress

File photo shows the rear logo on the 2007 Chrysler 300C during the Chicago Auto Show, February 7, 2007. General Motors Corp. will not make a first-round bid for DaimlerChrysler AG's Chrysler unit, leaving just private equity firms and an auto parts supplier in the running, the Times reported on Wednesday.

Credit: Reuters/John Gress

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LONDON (Reuters) - General Motors Corp. will not make a first-round bid for DaimlerChrysler AG's DCXGn.DE Chrysler unit, leaving just private equity firms and an auto parts supplier in the running, the Times reported on Wednesday.

Unnamed sources close to the talks were quoted in the newspaper as saying GM (GM.N) decided against making the bid because the company felt it had no need for the extra capacity.

Bid proposals were due to be submitted to U.S. investment bank JPMorgan Chase, which is advising DaimlerChrysler, on Friday, according to the Times.

Neither GM nor JPMorgan were immediately available for comment.

Bidders left in the ring included Canadian auto parts supplier Magna International Inc. MGa.TO, which is thought to have teamed up with private equity group Ripplewood, it said.

Private equity firms Cerberus Capital Management CBS.UL and a combination of Blackstone Group BG.UL and Centerbridge were also in the frame, the Times added.

People familiar with the matter have told Reuters that Cerberus, Blackstone and Magna have emerged as the leading candidates for Chrysler Group, now the No. 4 U.S. automaker.

GM also had spoken to Chrysler about expanded cooperation in vehicle development or a potential acquisition, according to those familiar with the talks.

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