DCX AG to accept first round of bid, GM emerged as potential buyer

Three private equity firms are expected to present bidding quotes for buying the troubled U.S. division of German automaker DaimlerChrysler before the end of this month, sources from America auto industry insiders unveiled yesterday.

Cerberus, the tandem of private-equity groups Blackstone Group LPand Centerbridge Partners LP, have met with Chrysler executives and begun reviewing financial and product-development information last week.

General Motors was also reported to have been involved in the bidding, but GM CEO Rick Wagoner declined to comment on whether the world's largest automaker was considering a bid for Chrysler.

According to the reporters, DaimlerChrysler has confirmed it would sell the company as a unit. Currently DaimlerChrysler's listed price is 7.5 bn dollars, which means GM has to offer 50 bn RMB to buy the company. Further, other Chinese automakers, including SAIC and Chery, told they would not consider the purchase.

At the same time Cerberus Capital Management LLC is piecing together a team of auto-industry veterans headed by former Chrysler executive Wolfgang Bernhard to bolster its expected bid for the U.S. unit.

Worrying about the job-cut, President of The United Auto Workers union also said the union was hoping to see German automaker Daimler hold on to its struggling Chrysler unit, adding that he was "not ready to concede" a spin-off was inevitable.