Chrysler is sold
DaimlerChrysler AG said Monday it will sell more
than 80 percent of its money-losing Chrysler Group to private equity firm
Cerberus Capital Management LP for $7.4 billion.
DaimlerChrysler AG said Monday it will sell more
than 80 percent of its money-losing Chrysler Group to private equity
firm Cerberus Capital Management LP for $7.4 billion,
unwinding its nearly decade-old deal to merge the U.S. brand with
Mercedes-Benz.
The German-American automaker said in a statement that an affiliate of Cerberus will acquire 80.1 percent in the new Chrysler Holding LLC while DaimlerChrysler will keep a 19.9 percent stake. It said that obligations for pensions and healthcare costs would be retained by the Chrysler companies.
Shareholders will decide on changing the company’s name to Daimler AG.
Pretty much all the articles appearing this early in the process are the usual “analyst” and opinion pieces.
Last year, General Motors Corp. sold a majority stake in its General Motors Acceptance Corp. financing arm to a consortium of investors led by Cerberus for about $14 billion. Analysts have said buying a big stake in Chrysler could be attractive to Cerberus because it could combine GMAC operations with Chrysler Financial.
In case you wondered, Cerberus was the guardian of the gates of Hell.
The German-American automaker said in a statement that an affiliate of Cerberus will acquire 80.1 percent in the new Chrysler Holding LLC while DaimlerChrysler will keep a 19.9 percent stake. It said that obligations for pensions and healthcare costs would be retained by the Chrysler companies.
Shareholders will decide on changing the company’s name to Daimler AG.
Pretty much all the articles appearing this early in the process are the usual “analyst” and opinion pieces.
Last year, General Motors Corp. sold a majority stake in its General Motors Acceptance Corp. financing arm to a consortium of investors led by Cerberus for about $14 billion. Analysts have said buying a big stake in Chrysler could be attractive to Cerberus because it could combine GMAC operations with Chrysler Financial.
In case you wondered, Cerberus was the guardian of the gates of Hell.
Posted: Mon - May 14, 2007 at 06:46 AM