Reuters / October 05, 2005
PARIS -- Renault SA denied on Wednesday a media report saying it was considering making an offer for Ford Motor Co. or General Motors.
French financial weekly Challenges said in its issue to be published on Thursday that Ghosn was "dreaming of a three-way alliance with Ford or General Motors".
The magazine said Ghosn had been considering a bid for DaimlerChrysler AG, but the recovery of the share price of the U.S.-German group had led him to change aim.
"He is closely studying an alliance with General Motors or Ford, where he declined an offer by the family to become chairman," the magazine said, adding the market value of the two U.S. groups was smaller than that of Renault and much smaller than that of Nissan.
"A precondition for such an operation, which would take place in the form of a share swap and that Ghosn wants to be friendly, would be that the U.S. state assumes at least part of the pension costs," the paper said.
Renault has a market capitalization of $28 billion, and Nissan's market cap is $52.7 billion.
Ford and GM, with a junk debt rating, are each worth about $17.5 billion