GM

No, not another story about how GM is trading at the same price it had back in 1950.

GM reportedly has held preliminary talks to acquire Chrysler, against the backdrop of an increasingly bleak decline for the auto industry. Reports on Friday night by The Wall Street Journal and the New York Times both cited unnamed people familiar with discussions between the two automakers. GM has been in talks with Cerberus Capital Management, which owns 80.1% of Chrysler and 51% of GMAC. Cerberus proposed a swap in which GM would acquire Chrysler's automotive operations, and in turn give Cerberus its remaining 49% stake in GMAC, the Journal reported.

Apparently the rumor from February 2007 wasn't wrong, just ahead of its time. But I don't understand the logic of this deal. Two weak players merging never solves anything.