case that the current market capitalization of DaimlerChrysler doesn't represent the potential value of the group - and I'm convinced that this is the case - this of course triggers the interest of third parties to investigate if they're able to unlock hidden or undeveloped value."
"Potentially, they are a takeover target," said Juergen Pieper, an analyst at Metzler Bank which is based in Frankfurt. Pieper estimates DaimlerChrysler's assets are worth $30 billion more than its combined stock value. "If you split it up, you can generate value. Mercedes is one of the great brands of the world."
Zetsche earlier said that the first priority was to deliver on the restructuring plan which was announced last month. He reiterated that no option, including keeping Chrysler, had been ruled out. Other analysts who saw Zetsche in talks in London, New York and Boston said he would not discuss sale or spinoff plans with them. But they came away with the impression that DaimlerChrysler's preferred option would be the sale of Chrysler.
General Motors Corp., the largest automaker in the industry, was also reported having serious talks with Daimler regarding the potential of Chrysler to GM. Nonetheless, Zetsche would not confirm that sale talks were under way.
"I can confirm that nine months ago or more, some discussions between the Chrysler Group and GM - I think initiated by GM but this doesn't matter - took place to discuss some potential common interests in some segments. I think large SUVs were discussed. Beyond that, I can't confirm anything," said Zetsche, who ran Chrysler for nearly five years.
Apprehensions and predictions swiftly spread. Transmission is as quick as a
window motor opening and closing car windows. On Monday, people familiar with the discussions said a team from Cerberus Capital met with Chrysler executives in Auburn Hills to discuss a possible bid for the company. The Blackstone Group, a big private equity firm, is also interested in purchasing Chrysler.
Zetsche said the management's decision to consider all options for Chrysler was not due to outside pressures. "The (DaimlerChrysler) AG and the Chrysler is not acting in reaction to pressure but in reaction to its own thinking and its own strategic process," he said. Zetsche stressed that the process did not take place only in Stuttgart and that Chrysler CEO Tom LaSorda was involved early on.
"A small, select group of the AG board, and definitely nobody of the supervisory board, took on this task to understand where we are, what the going-forward process should be, and ultimately deciding to look at further options as well," noted Zetsche.
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