FRANKFURT, MAR 20: Daimlerchrysler AG is still interested in buying Italian rival Fiat while Ford Motor Co is eyeing BMW AG, newspaper Welt am Sonntag reported on Sunday. The paper said DaimlerChrysler is considering buying Fiat despite the latter's alliance announced last week with General Motors in a hunt for economies of scale in the rapidly consolidating car industry.The report in Welt am Sonntag, citing DaimlerChrysler sources, also said the Stuttgart-based company was near a decision on whether to cooperate with Japanese carmaker Mitsubishi.A DaimlerChrysler spokesman called the report speculation. The company has repeatedly been tight-lipped on whether it seeks a stake in Fiat or Mitsubishi. A link-up with Mitsubishi depended on whether DaimlerChrysler was willing to take up the Japanese firm's more than 30 billion marks ($14.84 billion) in debt, Welt am Sonntag quoted an industry expert as saying.Japanese media have reported that DaimlerChrysler would take a stake of around 30 per cent in Mitsubishi, although analysts say this would not give the US-German firm the control over the investment it requires. Last week Fiat and General Motors agreed an alliance in which GM takes a 20 per cent stake in Fiat Auto and Fiat takes 5.1 per cent in GM.A DaimlerChrysler manager, however, told Welt am Sonntag: "Aretreat by the Americans is of course always possible." Last week industry sources confirmed that DaimlerChrysler had held takeover talks with Fiat.Fiat honorary chairman Gianni Agnelli told Turin daily LaStampa the US-German group had offered to buy his company. DaimlerChrysler is believed to have offered to buy Fiat Auto outright in shares and cash but the Agnelli family fought to retain control.At its annual results news conference late last month the transatlantic auto giant said it had no plans to buy French car maker Peugeot-Citroen. It stayed mum on its reported interest in acquiring Nissan Motor Co's ailing Nissan Diesel truck division in Japan.Daimler is also one of five major car makers which submitted letters of interest last month to buy South Korea's troubled Daewoo Motor and Ssangyong Motor as part of Daewoo's restructuring.FORD SET TO STRIKE BMW DEAL: Ford, meanwhile, is interested in taking over German luxury car maker BMW AG, although talks to that end have not taken place at the management board level, Welt am Sonntag said. The paper, citing BMW sources, said the two firms had been discussing through third parties a possible takeover over the past three months.It said General Motors and Volkswagen AG had also showed renewed interest in BMW after it had agreed last week to sell its loss-making UK Rover subsidiary. BMW chief executive Joachim Milberg and the Quandt family, which owns 48 per cent of BMW, both said the Munich-based company was not for sale.Stefan Quandt, a major shareholder within the Quandt's holding, was currently in talks with parties interested in linking up, Welt am Sonntag said. Daily Die Welt, quoting the head of BMW's workers council Manfred Schoch, reported in an article to appear on Monday that BMW must find a plan to keep its independence if it is to stop the Quandts from thinking of offloading shares.Schoch said the firm needed a plan "that will preserve BMW's independence. Only then will a sale of Quandt-family shares not be possible." BMW and Quandt officials were not immediately available for comment and Volkswagen declined comment.Ford's Chief for luxury car brands Wolfgang Reitzle told Frankfurter Allgemeine Zeitung in its Saturday edition that negotiations with BMW had only been about sport utility vehicle maker Land Rover, which Ford has agreed to buy from BMW for three billion euros.
