LONDON -- Kohlberg Kravis Roberts and Dubai International Capital are front runners to buy units being sold by Germany's DaimlerChrysler for about 1.7 billion euros ($2.04 billion), a source familiar with the situation said.
The grouping retains pole position going into the final round of bids despite the re-emergence as a bidder this week of German truckmaker and industrial group MAN, which had previously pulled out of the auction, the source said on Tuesday.
While the next round of bids is due Nov. 21, this may be pushed back slightly to allow MAN to catch up in the process with other bidders, who have had access to more due diligence, the source said.
The group of businesses being auctioned includes heavy diesel engine business MTU Friedrichshafen as well as Detroit Diesel's off-highway unit, the source said. Buyout firm EQT is also bidding, he said.
A spokeswoman for DaimlerChrysler declined to comment. KKR also declined comment.