Could a Chrysler-free Daimler be a takeover target?
The law of unintended consequences strikes again. There's a new twist in the soap opera that is Daimler minus Chrysler. A DaimlerChrysler without the US branch and its associated liabilities would be a significantly smaller company and a potentially much more attractive takeover target. The newsletter of the American International Automobile Dealers Association reports that some analysts feel that depending on how any separation is structured, an independent Daimler Group could find itself in the cross-hairs of hedge funds or private equity groups. Since Daimler doesn't have any individual shareholder big enough to keep them independent the way Porsche now dominates Volkswagen, a takeover might be easier. It's all just speculation for now, but it's something for Dr. Z to consider before he leaps.
[Source: The Auto Channel]