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Daimler eyes GM stake as payment for a Chrysler sale

By John Reed in London

Published: February 26 2007 02:00 | Last updated: February 26 2007 02:00

DaimlerChrysler is considering taking a minority stake in General Motors as payment for Chrysler if a deal between the two carmakers goes ahead.

According to people familiar with the situation, the Stuttgart-based German-American carmaker is weighing this all-share option. Other possibilities include a cash sale of Chrysler to private equity or industry investors and a flotation of the lossmaking unit.

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