DaimlerChrysler could get its first takeover offer for Chrysler by as early as the end of this month.

A report in The Wall Street Journal said that a complete takeover of the division is increasingly likely, although any offer would have to be ‘highly compelling’, before DaimlerChrysler would accept.

Several private equity firms have expressed an interest, including Blackstone Group, Centerbridge Partners and Cerberus. Canadian supplier Magna International is expected to enter into detailed negotiations with DaimlerChrysler this week, according to a report in the Financial Times Deutschland yesterday. After that it Magna will decide whether to proceed with due diligence. GM is also reported to have set up a working group to consider acquiring Chrysler.

DaimlerChrysler CEO, Dieter Zetsche, told Automobilwoche at the launch of the C-Class in Benidorm, Spain, this week, that Chrysler and Mercedes-Benz are continuing to work together on future models, because such cooperation has advantages for both companies. US media have reported that the two companies are cooperating on a small A/B segment car and on SUVs.