According to media reporters, General Motors and Cerbus are discussing ways to gain financial aid from the U.S. government if acquires Chrysler.
If merger will happen, Cerberus Capital Management LC, owner of Chrysler LLC, will remain with less that 10% in the new company.
Anyway, do not believe that the U.S. Government will agree this, because in cause this happen, effects will be disastrous. Tens of thousands of jobs will be eliminated, and also the new company will have almost monopoly on the U.S. auto market.
Analysts say the likelihood of any merger at all between GM and Chrysler may hinge on whether the new White House administration will support such a deal with aid amounting to billions of dollars—far more than the $1.5 billion (€1.2 billion) in loan guarantees given Chrysler in its last government loan bailout almost 30 years ago.