Cerberus wins bid for Chrysler
DaimlerChrysler said in a statement that it would retain a 19.9 percent stake in the Auburn Hills automaker, while Cerberus will contribute $7.4 billion in exchange for 80.1 percent of the new company, Chrysler Holding LLC.
"We're confident that we've found the solution that will create the greatest overall value — both for Daimler and Chrysler," DaimlerChrysler CEO Dieter Zetsche said in a statement.
"With this transaction, we have created the right conditions for a new start for Chrysler and Daimler," he said.
05/14/07 Cerberus Capital Management has won an intense bidding war to buy DaimlerChrysler AG's Chrysler Group in what would be a landmark acquisition of a major automaker by a private-equity firm, according to people close to the sale process.
The deal follows marathon negotiations between New York-based Cerberus and DaimlerChrysler and is expected to be formally announced as soon as today.
DaimlerChrysler is said to have chosen Cerberus over bids by rival private-equity giant Blackstone Group and Canadian auto supplier Magna International Inc.
The sale agreement with Cerberus is expected to be contingent on final terms to be negotiated with DaimlerChrysler. No sale price was immediately known.
The firm earlier this year took 51 percent ownership of GMAC Financial Services, GM's former auto financing unit.
Cerberus is expected to fold Chrysler's financing arm into GMAC to create a powerhouse auto lending operation. More at Detroit News