Renault-Nissan eyes Chrysler stake

Washington - Nissan Motor Co and partner Renault SA are eyeing a 20% stake in Chrysler, as General Motors also pursues takeover talks with the country's third-largest automaker.

Nissan-Renault has long been reported to be interested in a deal. On Wednesday, the Detroit News cited people familiar with the matter, as saying the proposal has been submitted to Cerberus Capital Management LP, the current majority owner of Chrysler.

Germany's Daimler still owns 20% of its one-time subsidiary.

Under the Nissan-Renault deal, Nissan would likely provide the financing as Renault is weighed down by $5bn in debts.

Nissan spokesperson Haruko Wada in Tokyo declined comment, Bloomberg financial news reported. Paris-based Renault spokeswoman Frederique Le Greves said the company has not offered to participate in buying a stake in Chrysler and is not in any discussions.

On Monday, the Wall Street Journal reported that GM-Chrysler merger could sacrifice up to 40 000 jobs. But the possible deal was facing new problems in the search for finance for the merger.

The companies could approach the US government for support, in exchange for a government stake in the new company, the Journal reported, joining the growing trend as the government bails out Wall Street and the banking industry to the tune of $700bn.

A fusion of GM and Chrysler would result in the world's largest automaker, displacing Toyota from its newly-won first place. In the US, the new company would command about one-third of the market, inviting special scrutiny from antitrust officials.

In the past three and a half years, GM has lost $66bn. The next quarterly report is due in the coming weeks.

- Sapa-dpa