DaimlerChrysler Wary Of Possible Hedge Fund Takeover

Filed in archive Hedgetalk on March 15, 2007

DaimlerChrysler announced this month it was considering all options for Chrysler, including a split, but without Chrysler, the Daimler group could be more of a takeover target for hedge funds.

"Should it come to pass that Chrysler is split off from Daimler, then Daimler would be an interesting target," the source said. A complete split-up of the cars, trucks and vans businesses would then be "a real danger." said Chief Financial Officer Bodo Uebber.

DaimlerChrysler declined comment on prospects for being acquired if it divests Chrysler but has said in the past the best defense against takeovers was good financial performance. The company has a market capitalization of $79 billion.

Rest of the story here.