In any deal with Chrysler LLC, Japanese carmaker Nissan Motor Co. Ltd. has decided that cash is king, so it won't be parting with any of the $4.6 billion it has in reserves if it should come to an arrangement with the No. 3 American auto company.
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As private equity firm Cerberus Capital Management LP shops around for
someone to take Chrysler off its hands,
sources have told Bloomberg
that Nissan is talking with the buyout shop but is unwilling to
consider any deal that would weaken its financial position.
Nissan is reportedly considering taking a 20% stake in Chrysler and
pulling it into its alliance with Renault SA, according to a report in The Detroit News. However any deal would have to be an all-stock
transaction as Nissan has decided protecting its ability to
weather a sharp downturn in sales is it first priority.
- George White
See Bloomberg storySee GM, Chrysler seeking alternatives on Dealscape
