BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Chrysler may have been sold]]>http://www.bloggingstocks.com/2007/05/13/chrysler-may-have-been-sold/http://www.bloggingstocks.com/2007/05/13/chrysler-may-have-been-sold/http://www.bloggingstocks.com/2007/05/13/chrysler-may-have-been-sold/#commentsFiled under: , , ,

The Wall Street Journal is reporting that the private equity firm Cerberus has won the bidding for Chrysler. DaimlerChrysler (NYSE: DCX), which will probably change its name, will hold a small stake in the new holding company. Cerberus bought the majority of GMAC from General Motors (NYSE: GM) last year.

Aside from what Cerberus pays for the U.S. car company, which may be very little, the key to the transaction will be that Daimler will move the $18 billion of Chrysler pension and benefits obligations off of its books.

The UAW is bound to try to derail the deal. They favor having Daimler keep Chrysler or sell it to Canadian car parts company Magna International (NYSE: MGA). In either case, the union believed it could hold on to more jobs. The UAW may now be faced with trying to block the deal at the Daimler supervisory board level, or threaten to strike in the face of the deal. A work stoppage could badly damage Chrysler's already troubled efforts to turn around it sinking U.S. sales.

Cerberus may have the money, but the union holds most of the cards.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Chrysler may have been sold originally appeared on BloggingStocks on Sun, 13 May 2007 15:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CerberusChryslerDaimlerChryslerDCXGeneral MotorsGMGMACMagna InternationalMagnaInternationalMGApensionsstrike threatsUAWunionsUnited Auto Workerswork stoppageSun, 13 May 2007 15:40:00 EST<![CDATA[Newspaper wrap-up 5-10-07: Murdoch began talks with DJ on March 29]]>http://www.bloggingstocks.com/2007/05/10/newspaper-wrap-up-5-10-07-murdoch-began-talks-with-dj-on-march/http://www.bloggingstocks.com/2007/05/10/newspaper-wrap-up-5-10-07-murdoch-began-talks-with-dj-on-march/http://www.bloggingstocks.com/2007/05/10/newspaper-wrap-up-5-10-07-murdoch-began-talks-with-dj-on-march/#commentsFiled under: , , , , ,

MAJOR PAPERS:
  • The Wall Street Journal (subscription required) reported that it was March 29, not the week of April 9 that News Corporation's (NYSE: NWS) Rupert Murdoch began talks with Dow Jones and Company Inc (NYSE: DJ), as securities regulators sort out the timing of events as insider trading allegations have surfaced in connection with News Corp.'s $5B offer for Dow Jones.
OTHER PAPERS:
WEBSITES:
  • Globe and Mail reported that Russian billionaire and automotive entrepreneur Oleg Deripaska's companies are going to buy 20 million shares of Canadian auto parts company Magna International Inc (NYSE: MGA) for $1.54B.

Newspaper wrap-up 5-10-07: Murdoch began talks with DJ on March 29 originally appeared on BloggingStocks on Thu, 10 May 2007 09:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bain CapitalBainCapitalCCUClear ChannelClear Channel CommunicationsClearChannelClearChannelCommunicationsDJDow JonesDowJonesFairfax FinancialFairfaxFinancialFFHFinancial TimesFinancialTimesinternetmagazinesMagnaMagna InternationalMagnaInternationalMGAMurdochNews CorpNews CorporationNewsCorpNewsCorporationNewspapersNWSReutersReuters GroupReutersGroupRTRSYThomas H. LeeThomasH.LeeThomson CorpThomsonCorpTOCWall Street JournalWallStreetJournalThu, 10 May 2007 09:15:00 EST<![CDATA[Bid for Chrysler unit sends DCX soaring]]>http://www.bloggingstocks.com/2007/03/23/bid-for-chrysler-unit-sends-dcx-soaring/http://www.bloggingstocks.com/2007/03/23/bid-for-chrysler-unit-sends-dcx-soaring/http://www.bloggingstocks.com/2007/03/23/bid-for-chrysler-unit-sends-dcx-soaring/#commentsFiled under: , , , , , ,

Daimlerchrysler AG (NYSE: DCX) opened at $81.22. So far today the stock has hit a low of $80.67 and a high of $82.84. As of 12:20 p.m., DCX is trading at $82.60, up $5.00 (6.4%).

After hitting a one year high of $77.99 yesterday, the stock has already established another high today after news of a buyout bid from Magna International and an unnamed private equity partner for the company's Chrysler unit. The technical indicators for DCX have been bullish and slightly deteriorating, while S&P gives the stock its worst 1 STARS (out of 5) strong sell rating.

For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $65 range. DCX was below $65 in early February, but has formed support around $66 since. This trade could be risky if the bid falls though and the company reverts to its previous prices, but the support around $66 could protect our position.

For more news & views about mergers and acquisitions, please see BloggingBuyouts.

Brent Archer is an options analyst and writer at Investors Observer (Free Subscription). DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.

Bid for Chrysler unit sends DCX soaring originally appeared on BloggingStocks on Fri, 23 Mar 2007 12:19:00 EST. Please see our terms for use of feeds.

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