The UK Times Online is reporting that JP Morgan, Daimler’s (DCX) investment adviser, will begin to take bids for Chrysler as early as this week. Potential buyers may include GM (GM), one or two car companies in China and Korea’s Hyundai.

The price quoted in The Times is 7 billion pounds. close to $14 billion.

24/7 Wall St. analysis based on comparable price to sales ratios at Ford (F) and other metrics of the Daimler US division would put that price about double any reasonable bid. The value of Chrysler is probably not much above $7 billion if most of its US liabilities go with it.

The company may be sold, but Morgan’s price may be way too high.

Douglas A. McIntyre