Chrysler, Daimler in Merger Talks
STUTTGART, Germany (AP) _ The Germany luxury automaker Daimler-Benz and Chrysler Corp., the No. 3 automaker in the United States, are in talks about a possible merger, the companies confirmed Wednesday.
Industry sources estimated the purchase price at $35 billion.
Daimler stocks surged 8 percent on the German stock exchange after the merger talks were confirmed in a joint statement issued from Daimler headquarters in Stuttgart.
Daimler is Germany’s largest industrial group.
Daimler’s board was also expected to consider the merger this week. Chrysler’s directors have a regularly scheduled board meeting Wednesday.
Last year there was market talk about a merger between Chrysler and BMW, another German luxury car maker. BMW is currently bidding for Britain Vickers PLC’s Rolls-Royce Motor Cars.