GM and Cerberus work out major issues involved with Chrysler merger

Sources familiar with the talks said today that both GM and Cerberus Capital Management have resolved the major issues involved with a Chrysler/GM merger. According to Reuters, the sources said that that the final deal will now depend on the financing provided by the government.

GM CEO Rick Wagoner recently met with Congress to seek close to $10 billion in financial aid. $3 billion of the $10 billion will include in an exchange for preferred stock in the merger.

It’s a little more complicated than that with the banks involved in the talks. JPMorgan Chase & Co., Goldman Sachs, Citigroup and Morgan Stanley have yet to make a decision since lenders have sold part of the debut to other investors.

According to Anderson Economic Group of Lansing, a Michigan based consulting firm, the GM/Chrysler merger will cost at least 25,000 to 35,000 jobs at the two companies.

Source: Reuters