AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.06 Decreased By ▼ -0.47 (-0.36%)
BOP 6.75 Increased By ▲ 0.07 (1.05%)
CNERGY 4.49 Decreased By ▼ -0.14 (-3.02%)
DCL 8.55 Decreased By ▼ -0.39 (-4.36%)
DFML 40.82 Decreased By ▼ -0.87 (-2.09%)
DGKC 80.96 Decreased By ▼ -2.81 (-3.35%)
FCCL 32.77 No Change ▼ 0.00 (0%)
FFBL 74.43 Decreased By ▼ -1.04 (-1.38%)
FFL 11.74 Increased By ▲ 0.27 (2.35%)
HUBC 109.58 Decreased By ▼ -0.97 (-0.88%)
HUMNL 13.75 Decreased By ▼ -0.81 (-5.56%)
KEL 5.31 Decreased By ▼ -0.08 (-1.48%)
KOSM 7.72 Decreased By ▼ -0.68 (-8.1%)
MLCF 38.60 Decreased By ▼ -1.19 (-2.99%)
NBP 63.51 Increased By ▲ 3.22 (5.34%)
OGDC 194.69 Decreased By ▼ -4.97 (-2.49%)
PAEL 25.71 Decreased By ▼ -0.94 (-3.53%)
PIBTL 7.39 Decreased By ▼ -0.27 (-3.52%)
PPL 155.45 Decreased By ▼ -2.47 (-1.56%)
PRL 25.79 Decreased By ▼ -0.94 (-3.52%)
PTC 17.50 Decreased By ▼ -0.96 (-5.2%)
SEARL 78.65 Decreased By ▼ -3.79 (-4.6%)
TELE 7.86 Decreased By ▼ -0.45 (-5.42%)
TOMCL 33.73 Decreased By ▼ -0.78 (-2.26%)
TPLP 8.40 Decreased By ▼ -0.66 (-7.28%)
TREET 16.27 Decreased By ▼ -1.20 (-6.87%)
TRG 58.22 Decreased By ▼ -3.10 (-5.06%)
UNITY 27.49 Increased By ▲ 0.06 (0.22%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 10,445 Increased By 38.5 (0.37%)
BR30 31,189 Decreased By -523.9 (-1.65%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)

The US Treasury Department is considering how to best provide financial assistance to facilitate a possible merger between General Motors Corp and Chrysler LLC, a source familiar with the government's thinking told Reuters on Monday.
The Treasury Department is considering aid of at least $5 billion, which could include direct capital injections and government purchases of auto loans, the source said, speaking on condition of anonymity. A decision on the government aid could come as early as this week, the source said. The aid would likely be focused on GM and Chrysler and not on Ford Motor Co, which is better off than its US rivals, the source said.
GM has been lobbying the Bush administration for substantial help as it seeks to merge with Chrysler, which is owned by Cerberus Capital Management. Federal aid is considered a requirement for completing the deal, other sources have said.
People briefed on the merger discussions have previously said GM would need a minimum of $5 billion to start restructuring Chrysler's operations. The total amount needed could reach $10 billion, the sources have said. GM chief executive Rick Wagoner was in Washington last week to press for help after congressional allies, in an urgent plea, urged the Treasury to provide immediate and direct liquidity for Detroit.
Terms of any assistance for GM were not immediately apparent, according to the source knowledgeable about the Treasury Department's thinking. However, Treasury has taken equity stakes as part of its $250 billion capital injection program for several US banks.
A GM spokeswoman declined to comment on possible federal government aid for a merger between the No 1 US automaker and rival Chrysler. Representatives of the US Treasury Department were not immediately available for comment. GM has failed to find an outside investor to help fund its acquisition at a time when global auto sales are slowing and sales in the US market are dropping toward the lowest level in two decades, sources said last week.

Copyright Reuters, 2008

Comments

Comments are closed.