Today is the big day for Chrysler Group because it is the deadline for first-round bids. As expected, today's morning news is filled with speculation about who submitted bids to J.P. Morgan Chase & Co. As expected, Cerberus Capital Management reportedly placed an offer, but unexpectedly has opted to go solo instead of partnering with Canadian auto-parts maker Magna International, which reportedly is now partnering with Ripplewood Holdings, making it the third private equity player in the auction. Cerberus' decision to dump Magna is not shocking considering its recent agreement to purchase bankrupt rival auto-parts maker Tower Automotive Inc. and its outstanding bid for Delphi. Blackstone also remains in the race as a contender for Chrysler. However, The Deal's Lou Whiteman wrote that, even if a deal is reached, shareholders of DaimlerChrysler may be unpleasantly surprised by the price or the amount of cooperation a buyer might demand. —Matthew Wurtzel
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