Company News: Equity firms take hard look at Chrysler

Two private equity firms appear to be the front-runners in the quest to buy Chrysler Group, the troubled U.S. arm of DaimlerChrysler AG.

Cerberus Capital Management LLC and a consortium of investors headed by Blackstone Group and Centerbridge Partners LP spent much of last week at Chrysler’s Auburn Hills headquarters crunching numbers and meeting with top Chrysler executives, a company official said Tuesday.

The Chrysler official, who spoke to the Associated Press on condition of anonymity due to the sensitive nature of the talks, said potential bidders were studying Chrysler’s finances.

Canadian auto parts maker Magna International and General Motors Corp. also reportedly have looked into buying all or part of Chrysler Group. Private equity firms Apollo Management LP and the Carlyle Group also are said to be interested.

Representatives for the private equity firms haven’t talked about the issue and GM won’t confirm or deny the reports. Magna’s top executive has confirmed his company’s interest.

“The U.S. Justice Department is investigating a complaint alleging that Microsoft has violated the antitrust settlement it reached with the federal government in 2002, according to a court filing discussed at a hearing Tuesday.

U.S. District Judge Colleen Kollar-Kotelly asked for more details about the complaint during a regularly scheduled review of Microsoft’s compliance with the settlement.

Aaron D. Hoag, a government attorney, declined, saying the complaining company has requesting it not be identified. Microsoft’s lawyers said they are cooperating with the probe but declined further comment.

“Bankrupt Northwest Airlines Corp. had almost a year and a half to come up with its own bankruptcy reorganization plan. Now some shareholders say it’s time for someone else to get a turn.

Northwest’s exclusivity period is set to run out Friday. It has asked a New York bankruptcy judge for an extension until June 29, which is around the time Northwest has said it expects to exit Chapter 11 protection.

But late Monday, a group of shareholders that has been fighting with the airline asked the judge to deny the extension. The shareholders, mostly hedge funds, said Northwest’s plan fails to explore how much the airline might be worth if another carrier bought Northwest. The hedge funds have argued that a deal might make Northwest worth enough for shareholders to receive something.