March 7 (Bloomberg) -- Blackstone Group representatives are visiting Chrysler's U.S. headquarters today as they explore a possible investment in the DaimlerChrysler AG unit, a person familiar with the matter said.

The New York private-equity firm is meeting with Chrysler officials including Chief Executive Officer Tom LaSorda, said the person, who didn't want to be named because the visit isn't public. Cerberus Capital Management LP representatives met with Chrysler officials two days ago, and both received copies of the prospectus completed by JPMorgan Chase & Co, the person said.

The meetings follow DaimlerChrysler CEO Dieter Zetsche's Feb. 14 announcement that ``all options are on the table'' for Auburn Hills, Michigan-based Chrysler after its $1.5 billion loss last year. A sale or spinoff would unravel the 1998 merger of the German and U.S. automakers.

``The private-equity firms have a lot of money to deploy, so it's not surprising they would take a look at the opportunity,'' said Morningstar Inc. analyst John Novak in Chicago.

The Detroit News reported the Blackstone and Cerberus visits yesterday.

Chrysler spokesman Mike Aberlich, Blackstone spokesman John Ford and Cerberus spokesman Peter Duda declined to comment.

DaimlerChrysler, of Stuttgart, Germany, is also discussing the possible sale of Chrysler to General Motors Corp., people with knowledge of the talks said last month. GM, the world's largest automaker, and Chrysler also are considering the joint development of models, including large sport-utility vehicles

Still Talking

The SUV discussions haven't reached a conclusion, Zetsche said in an interview at the Geneva Motor Show yesterday. The talks look ``promising,'' he said, without providing details. GM CEO Rick Wagoner, also in Geneva, declined to comment on the possibility of GM taking a stake in Chrysler or any other cooperation.

Separately, United Auto Workers President Ron Gettelfinger said he is continuing to review whether the union will grant Chrysler health-care concessions in line with those provided to GM and Ford Motor Co.

The union ``wasn't aware'' that Chrysler was about to announce a surprise $1.5 billion third-quarter loss when it said in early September that it wouldn't grant concessions, Gettelfinger said in an interview today on WJR radio in Detroit.

``We are weighing every bit of information we have been providing, and the process has been ongoing,'' Gettelfinger said. ``We are working hard to keep the Chrysler Group in the DaimlerChrysler family.''

Auto Ties

Cerberus and Blackstone both have automotive investments. Cerberus last year led a group that bought a 51 percent stake in GM's financial services unit, now called GMAC LLC. Cerberus is also negotiating an accord under which it would lead four other financial companies in a $3.4 billion investment in bankrupt Delphi Corp., the biggest U.S. auto-parts maker.

Blackstone owns a 55 percent stake in TRW Automotive Inc., the biggest maker of automotive safety systems.

``Chrysler would likely face a tough road as an independent company,'' said Morningstar's Novak. ``Of course, private equity's success would depend on what they end up paying and how significantly they can restructure the business.''

The additional yield spread, or premium, that investors demand to hold DaimlerChrysler's 1.25 billion euros of 4.375 percent bonds due March 2013, compared with government bonds with a similar maturity, widened by 3 basis points to 69 basis points today.

The U.S. shares of DaimlerChrysler rose 26 cents to $68.87 at 4:19 p.m. in New York Stock Exchange composite trading. The shares have risen 11 percent in the past 12 months.

To contact the reporters on this story: Jeff Bennett in Southfield, Michigan, at jbennett17@bloomberg.netJason Kelly in New York at jkelly14@bloomberg.net.

Last Updated: March 7, 2007 18:08 EST