
GM, Chrysler Merger Talks on Hold: Report
A potential merger of
General Motors
(GM) - Get Report
and
Chrysler
has hit an impasse after the Bush administration ruled out funding for a deal, according to a published report.
This puts any merger of the struggling automakers on hold until after the U.S. presidential election,
Reuters
reports, citing sources with direct knowledge of the talks.
The development opens the door for
Cerberus
, Chrysler's owner, to restart talks with the Nissan-Renault alliance. Cerberus has seen a deal with the joint venture of
Nissan
(NSANY)
and
Renault
as an option outside of a GM acquisition of Chrysler.
GM had approached the
Treasury Department
in recent days about support for the merger through roughly $10 billion in funding that would have included taking an ownership stake in the merged company,
Reuters
reports. But a Bush administration official said Thursday the Treasury Department wasn't negotiating direct aid for the merger.
This article was written by a staff member of TheStreet.com.