Blackstone Group eyeing DaimlerChrysler
 

Blackstone, the world’s biggest buyout firm, has approached DaimlerChrysler about making an offer for its ailing US division, thought to be worth around €10 billion (£13.6 billion), and has been given access to its books, The Times has learnt.

It has approached DaimlerChrysler about a possible bid for Chrysler and is now seen as the leading contender to win control of the company. Blackstone is scrutinising the accounts of the unit, which makes vehicles under the Jeep, Dodge and Chrysler brands, before deciding whether to proceed with a formal offer.

Cerberus, the hedge fund, is also thought to be examining Chrysler’s books, while GM is continuing the takeover talks it began in December before Daimler hoisted the for-sale sign over its American business last month.

Blackstone agreed the record buyout last month with the $40 billion (£22 billion) takeover of Equity Office, America’s largest office landlord, only for its record to be eclipsed by Kohlberg, Kravis, Roberts, its arch rival, three weeks later.

The buyout firm owns a majority stake in TRW Auto-motive, a US car parts maker.

Blackstone is thought to have begun scrutinising confidential data relating to Chrysler’s assets, liabilities, development plans and sales predictions in the past week.

One of the key concerns for potential bidders is Chrysler estimated $18 billion of health-care liabilities and any deal would hinge on what extent Daimler is prepared to absorb those costs.

Blackstone, Cerberus and Daimler Chrysler all declined to comment on the sale process.