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DaimlerChrysler to sell 1.0 bln euro bond Friday

LONDON, Sept 19 (Reuters) - DaimlerChrysler North America Holding Corp. will sell a one billion euro three-year bond on Friday, a banking source said.

Price talk for the bond, to be guaranteed by German auto giant DaimlerChrysler AG , has been tightened to 83 basis points over the swaps curve from earlier guidance of 85 basis points over, the source said.

Allocations are under way and pricing is expected imminently, sources said.

DaimlerChrysler last sold a fixed-rate bond in euros in December 2002, although the car company has been active in the floating-rate market throughout 2003, last selling a 750 million euro two-year note in July.

DaimlerChrysler is rated A3 by Moody's Investors Service and BBB+ by Standard & Poor's.

Commerzbank, Hypovereinsbank and Royal Bank of Scotland are managing the sale.