Wednesday, October 04, 2006
Who Will Be The Belle Of The Renault-Nissan Ball?
SSG has been watching the GM-Renault negotiations closely (
LINK) and studying the implications for satellite radio. Here's the latest twist:
Live In Play,
www.breifing.com04-Oct-06, 11:46
GM Follow-up: WSJ says GM, Nissan-Renault alliance talks terminated, according to source (32.47 -0.94) -Update-
Dow Jones reports the chief execs of General Motors and Nissan-Renault terminated talks about a possible globe-spanning alliance, according to a person familiar with the situation. In a phone call Wednesday morning, GM CEO Rick Wagoner and Carlos Ghosn, chief executive of Nissan Motor (NSANY) and Renault, decided that the two sides were too far apart on the value of the potential tie-up and decided to stop the high-stakes talks which had been underway for two months. The move comes ahead of the mid-October deadline the two sides had set for a decision. Behind the failed talks was GM's demand that Nissan-Renault pay GM a "control premium" if it bought 20% of GM's stock as part of the alliance, according to another person familiar with the matter. Wagoner told his board Tuesday that investment bankers advised GM to secure a 20% control premium because such an alliance -- while not technically control -- would prevent the Detroit automaker from making any other joint ventures.
10/04/2006 12:03:00 PM
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