Chrysler LLC owner Cerberus Capital Management has halted talks with the Renault-Nissan alliance because it is intent on selling Chrysler to General Motors (GM) - Get Report, according to a published media report.
Both Renault-Nissan and Cerberus acknowledged that Cerberus would prefer to conclude a deal with GM, according to a report in
The Detroit News
that cited sources familiar with the situation. Cerberus and Renault-Nissan have scheduled no further talks, although they have not ruled out discussions in the future, the report said, adding that Cerberus and Nissan declined to comment.
Nissan-Renault had proposed taking a stake in Chrysler of about 20%, according to the report. GM, on the other hand, would like to acquire all of Chrysler, but that requires getting financing, the report noted.
Meanwhile, GM officials are talking to the U.S. Treasury about a range of issues and to the Energy Department about getting some of the $25 billion in loans that have already been authorized for the auto industry, the report added.
GM shares finished Friday down 28 cents at $5.79.
This article was written by a staff member of TheStreet.com.