Chrysler-GM deal continuing, according to Wall Street Journal

Despite earlier leaks that claimed the talks between Chrysler and GM had been postponed due to the economic situation, the Wall Street Journal claims that a deal is imminent:

General Motors Corp. and Chrysler LLC are picking up the pace on merger discussions as the two sides are seeing strong support from banks and other potential lenders that are eager to see a deal done, according to people familiar with the matter.

GM, set to report dismal third-quarter earnings in coming weeks and scrambling to find new sources of funding, is aiming to get a deal done as soon as the end of October, these people said.

While a Cerberus source claimed that the investment firm would demand a stake in any merged company, the size of the stake was not mentioned.