MAJOR PAPERS:

• The Wall Street Journal reported that the Nasdaq Stock Market Inc (NASDAQ: NDAQ) is in talks to buy the Philadelphia Stock Exchange, the third largest options exchange in the U.S.
• The Wall Street Journal reported that Kirk Kerkorian wasn't invited to meet this week with DaimlerChrysler AG (NYSE: DCX) as it gets together with bidders for its Chrysler unit.
• Also in the Wall Street Journal, Xstrata will sell its aluminum unit to Apollo Management for $1.5B, higher than expected.

OTHER PAPERS:

• According to the New York Post, citing sources familiar with the matter, the private-equity firms that bought out Clear Channel Communications Inc (NYSE: CCU), Thomas H. Lee Partners and Bain Capital, are weighing their options as they wait for a "crucial" shareholder vote on the deal, which will come next week.

WEBSITES:

• According to Barron's Online's "Inside Scoop" column, Carl Icahn's investment groups reported that in the last two weeks they have increased their Motorola Inc (NYSE: MOT) holdings to 69.1M shares, or a 2.9% stake, from 64.9M shares, or a 2.7% stake.
• DigiTimes.com reported that Samsung is reportedly switching capacity from DRAM back to NAND flash.

With the Chrysler Group in play, the company's parent -- DaimlerChrysler AG (NYSE: DCX) -- is fielding a variety of big-money calls. The buzz is that private equity firms Blackstone Group, Cereberus Capital Management and Centerbridge Capital Partners are preparing bids.

But, hey, it's really not a mega auto deal without billionaire Kirk Kerkorian, right?

Well, today his investment firm, Tracinda Corp., made a $4.5 billion cash offer for Chrysler Group. According to the Wall Street Journal, he is even willing to make a good faith deposit for $100 million [subscription required].

Keep in mind that Kerkorian is a billionaire for a reason: he knows how to structure deals.So, his offer comes with some conditions, one being that the Chrysler Group will need to strike a good deal with the UAW. Moreover, there needs to be a way to deal with the hot potatoes of pension and healthcare liabilities.

I think I would want the same things if I was shelling out $4.5 billion.

It's also getting Wall Street excited – as there may be real interest in Chrysler Group. DaimlerChrysler's stock was up as much as 4.9% to $84.75 on the news. DCX is now up 2.85% to $83.38.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

About an hour ago I blogged about General Motor Corp. (NYSE:GM), lamenting on the stock price performance today (and since the beginning of the week) and listing possible reasons. And one of the reasons has immediately materialized.

Kirk Kerkorian, the billionaire who holds (held) 9.9% of GM through his Tracinda Corp. investment firm, sold 14 million GM shares at $33 a share, taking his stake in GM down to 7.4%, according to a SEC filing.

Speculations that Kerkorian was looking to sell or reduce his stake in GM have been pushing the stock price down even before the SEC filing, especially after his announced bid to buy 15 million of MGM Mirage (NYSE:MGM) for $55 a share, a transaction that would increase his holding in the hotel and casino company to over 61%.

GM shares, which actually performed fairly well this year as investors responded favorably to restructuring plans, are down 3.5% as of now (1:30 p.m.) and over 10% on the week. The prospects of Kerkorian losing interest in GM and not continuing to push for positive changes in the auto maker company, don't sit well with Wall St.

After talks between General Motors Corporation (NYSE: GM) and Nissan-Renault came to a unsuccessful end on Wednesday, GM's largest investor, Kirk Kerkorian, has said that he has no plans of making any further investments in the automobile giant.

Kerkorian was a strong voice in trying to facilitate an alliance between GM and Nissan-Renault and is obviously upset over the failure. Kerkorian, who currently owns 9.9% of General Motors had told the SEC earlier this week that he was considering adding to his holdings to lift his stake to 12%.

Not only has Kerkorian decided not to add to his position, his adviser Jerome York , who served on GM's board, has resigned from his position. As Autoblog says, it's a lot like taking your ball and going home...

After today's announcement GM stock fell as much as 8.3% to a low of $30.38 and is currently trading down 4.0% to $31.80 down $1.33.

What is the average General Motors investor to do these days? With the rumored GM-Nissan deal having fallen apart (who knows why), General Motors Corporation (NYSE:GM) is left in just the same situation as it is now -- horrid sales numbers compared to the competition and the looming threat of Toyota Motor Corporation (ADR) (NYSE:TM) overtaking it as the world's largest automaker for the first time in a many many years. That's mostly a symbolic changing of the guards, but the concern that it will sway investor sentiment is already being voiced.

With GM investor Kirk Kerkorian having a few long days and nights recently -- he was a main proponent of the GM and Nissan potential alliance -- many in the investing community are wondering what will be his next move. He controls so many GM shares and is probably itching to ensure his investment would not be better off sunk into a passbook savings account.

Kerkorian does stand to make a small killing if he cashes out his GM stake right now -- he won't lose money, as GM shares are actually up 75% in 2006. But, investors like him usually want more and more and more -- hence, his reputation for meddling in the corporate affairs of companies where he holds large stakes. If Kerkorian continues to hold GM, he'll continue to pressure the board and CEO Rick Wagoner to unlock as much shareholder value as possible -- and you can take that to the bank.