It is their duty to the shareholders of the group

The Board of Directors of General Motors (GM) should in all probability announce, after be met today, that it is prepared to study the idea launched by Kirk Kerkorian to an alliance with Renault-Nissan. But while Richard "Rick" Wagoner, the CEO of GM, was yesterday on the point, according to the Wall Street Journal, said why such an operation would be inappropriate, likely to be long before a final agreement between the two groups, according to connoisseurs of the sector.

"GM managers have no choice that to think about this proposal, explained a US business banker of the sector. It is their duty to the shareholders of the group. "This is the point of view of analysts interviewed by the"Detroit Free Press", the newspaper of the city of the headquarters of GM. The pressure is mounted a notch last week on the direction of the first constructor, already engaged in a drastic restructuring after a year plan 2005 which resulted in a loss of $ 10.6 billion. Shareholder of 9.9, California billionaire Kirk Kerkorian has indeed contacted the leadership of the Renault-Nissan alliance for inviting him to explore closer ties with GM and has made public its approach last Friday.

Idea that climb the title

Stating that Carlos Ghosn, CEO of Renault-Nissan was not opposed to this idea that the advice of Renault and Nissan have since confirmed Kirk Kerkorian has caused a jump in the GM title on Wall Street. Renault-Nissan would in effect take a 20 stake in the us.

If the idea of such an alliance there is much skepticism and share across the Atlantic, it is not completely excluded. "The continuation of the consolidation in the automotive sector is quite logical given the synergies that can be identified by groups closer." In addition, Renault and Nissan had great difficulty in the American market, an alliance with GM help improve their positions, explained the American investor Wilbur Ross, who now has the ambition to become one of the first players in the automotive equipment in the world. Take that minority participation however opens the door to

many conflicts of interest.

In fact, a transaction of this magnitude is likely to take much time, "weeks, even months, explains the above cited business banker, because they must still go through the accounts of the three groups to assess synergies and determine how high of capital it is reasonable for Renault-Nissan, to return so that the bet is paid". Kirk Kerkorian itself would in fact simply launched the idea to raise the GM share price, but did not yet reportedly completely its position, according to the banker. In addition, social conventions with the United Auto Workers (UAW), the main Union in the sector, must be renegotiated at the end of the summer. "If I were Renault-Nissan, I would expect to know what these negotiations", continues to the source. Without excluding any immediately matching, Rick Wagoner should do today part of his distrust of this type of alliance, yesterday explained the "Wall Street Journal". A meeting with Carlos Ghosn would nevertheless scheduled July 14.