Chrysler Scraps $12 Billion Sale of Loans for Auto Business, Investors Say

(Bloomberg) -- Chrysler abandoned plans to sell
$12 billion of loans to complete its purchase by Cerberus
Capital Management LP after investors balked at purchasing the
high-yield, high-risk debt, according to investors who were
briefed on the decision.

The unit of DaimlerChrysler AG scrapped the sale of loans
linked to its automotive business after failing to find demand,
said the investors, who declined to be named because the terms
aren't public. Banks led by JPMorgan Chase & Co. will assume $10
billion of that debt and Cerberus and DaimlerChrysler agreed to
buy the remaining $2 billion, the investors said.


Read more at Bloomberg Bonds News

RLPC-UPDATE 1-Chrysler Corp postpones $12 bln auto loan deal

(Reuters) - The automaker is raising cash to help fund Chrysler Group's
buyout from DaimlerChrysler AG by Cerberus Capital
Management.




The buyout is still expected to close because underwriters
remain committed to providing financing, market sources told
RLPC.


Read more at Reuters.com Mergers News

UPDATE 1-Chrysler's bankers may take on debt-WSJ

(Reuters) - Chrysler is being spun off by German parent DaimlerChrysler
in a $7.4 billion deal with Cerberus Capital
Management [CBS.UL].




Chrysler's bankers -- including J.P. Morgan Chase & Co.
, Goldman Sachs Group Inc. , Citigroup Inc.
, Bear Stearns Cos. and Morgan Stanley --
have spent the past month trying to convince investors to buy
$12 billion in loans for Chrysler's auto business and $8
billion in loans for its financial arm, according to the
report.


Read more at Reuters.com Mergers News

Daimler down on talk of Chrysler financing problems

(Reuters) - FRANKFURT, July 11 - DaimlerChrysler shares fell more than 2 percent on Wednesday on market talk of possible financing difficulties for the sale of U.S. carmaking arm Chrysler to Cerberus, traders said, but Daimler said it was not aware of any difficulties.



Traders cited talk that Cerberus [CBS.UL] had difficulties financing the purchase of Chrysler, a deal made in May this year and which is scheduled to close in the third quarter.


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Oregon state appeals Freightliner fraud settlement

(Reuters) - In December, the court ordered Portland-based Freightliner
to pay MAN at least $488 million and, with DaimlerChrysler, an
additional $350 million in punitive damages -- an amount
believed to be the largest such award ever in Oregon.




But the parties struck a new deal in late May that excluded
punitive damages, and Judge Kathleen Dailey approved that deal
on June 7.


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DaimlerChrysler CEO sees good years ahead: paper

(Reuters) - DaimlerChrysler announced in May it would sell an 80.1-percent stake in Chrysler Group to private equity firm Cerberus Capital Management , unwinding the 1998 merger of Daimler-Benz and Chrysler that never worked out as planned.




Zetsche pointed out that the risk of being taken over by a financial investor was much lower after the sale.


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Chrysler, Getrag to detail Indiana investment

(Reuters) - Getrag bought land in Tipton earlier this year to develop a
transmission plant after announcing that it had agreed to
supply new technology to DaimlerChrysler AG .




A Chrysler spokesman declined to provide further detail
ahead of Monday's announcement. A representative for Getrag,
which has supplied transmissions for Chrysler's PT Cruiser,
would not be immediately reached.


Read more at Reuters.com Bonds News

European Energy Stocks, Shell May Rise; Daimler, Peugeot Might Fall

(Bloomberg) -- European energy stocks may advance
after Citigroup Inc. raised its forecast for Brent crude this
year and upgraded shares of Royal Dutch Shell Plc, the region's
biggest oil company.

DaimlerChrysler AG and PSA Peugeot Citroen may decline after
their U.S.-traded securities dropped.


Read more at Bloomberg Stocks News

GM's relations with suppliers improving: study

(Reuters) - Toyota Motor Corp. and Honda Motor Co. Ltd.
were rated first and second respectively and held
broad leads over others as automakers that North American auto
parts suppliers most want to do business with, it found.




Nissan Motor Co. Ltd. finished third and
DaimlerChrysler AG fourth in the study.


Read more at Reuters.com Business News

European Stocks Retreat From 6 1/2 Year High; Novartis, Daimler Pace Drop

(Bloomberg) -- European stocks declined from a 6 1/2-
year high as investors bet share price gains have exceeded
earnings prospects.

Novartis AG and DaimlerChrysler AG paced the drop. Societe
Generale, Axa SA, and STMicroelectronics NV weighed on markets as
they traded without the right to their latest dividend. Capitalia
SpA fell after UniCredit SpA agreed to buy the Italian bank for
21.8 billion euros ($29.5 billion).


Read more at Bloomberg Stocks News