The Blackstone Group In Hunt For Chrysler

Sunday March 4, 3:51 pm ET

Private equity firm The Blackstone Group is the leading contender to purchase DaimlerChrysler's ailing Chrysler group. The Detroit News reported this weekend that the private equity firm, which -- along with several other suitors -- was recently shown Chrysler's private financial data, is considered the leader by virtue of its $125 billion war chest and experience in the auto industry. Blackstone is the majority owner of TRW Automotive Holdings and was a main investor in American Axle and Manufacturing. On February 14, DaimlerChrysler CEO Dieter Zetsche announced that "all options" were being considered with regard to Chrysler, which posted a $1.5 billion loss in Q3 2006. Other contenders include Cerberus Capital Management, which is attempting to purchase bankrupt auto-parts manufacturer Delphi Corp., and General Motors. Chrysler is considered by analysts to be a tough buy: it brings with it an estimated $18 billion in healthcare liabilities. Blackstone recently closed the biggest LBO in history: the $39 billion purchase of real-estate company Equity Office Partners.