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11.10.2008|15:42|Politics/Economics

General Motors and Chrysler hold talks about possible merger

US car giants General Motors and Chrysler are in talks about a possible merger.

The talks have been going on for a month but neither of the parties have made any direct official comment.

The Wall Street Journal stays that on Saturday negotiations between companies were suspended because of instability on financial market.

The New York Times's sources spoke of a merger that was a "50-50" possibility, although it could take weeks to finalise and had been stalled by the turmoil in the financial markets.

GM shares hit a 60-year low this week. It posted a second-quarter net loss of $15.5bn.

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