Reuters dominates coverage of U.S. auto industry

Reuters was alone with news on Oct. 29 that GM and Cerberus had resolved major issues in their merger talks, but the final form of any deal would depend on the financing and government support available. Reuters was also alone with news that Cerberus was in intense discussions with banks to refinance Chrysler debt —at least $7 billion in loans that would otherwise have to be paid off in full in case of a merger. GM shares, already up about 1 percent, rose 10 percent following our headlines. The report was quickly picked up by CNBC, Dow Jones and Bloomberg. Then on Oct. 31, Reuters was alone in reporting that GM`s bid to acquire Chrysler from Cerberus was on hold after the Bush administration rebuffed a request for funding to support the merger. The development sent GM shares down by 5 percent in premarket trade and they never recovered. The Reuters exclusive was credited by Dow Jones, MarketWatch and CBS radio.