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General Motors Corporation, Chrysler LLC and Cerberus Capital Management LP have held preliminary talks about a merger or an acquisition of Chrysler by GM, according to a person familiar with the talks.
Chrysler, which is 80.1 percent owned by Cerberus, already has a joint venture with GM making a hybrid gas-electric powertrain, and has discussed a full merger or acquisition with GM, said the person, who did not want to be identified because the talks have not been made public.
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The negotiations between 100-year-old GM and 83-year-old Chrysler began more than a month ago. The Times said its sources pegged the chances of a merger being completed at "50-50."
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Source: Associated Press
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