Private equity group Cerberus Capital Management will take control of the Chrysler group in a transaction valued at $7.45 billion (5.5 billion euros). DaimlerChrysler AG announced the Cerberus deal this morning. An affiliate of Cerberus will acquire 80.1 percent of Chrysler, while DaimlerChrysler will retain 19.9 percent.
I was reading about the true cost of the sale. After Daimler pays its obligations (and most of sales price money goes back to chysler finaical unit) it will cost Dailmer 500 million to get rid of Chysler. You have to be looking at some serious future red ink to be motivated to in effect pay someone 500 million to take it off your hands. I may be wrong but I think their days are numbered and the buzzards are starting to circle in distance. Cerberus has only been around since
1992 and the company itself only made about 180 million last year for themselves after paying investors. They do not have deep pockets of their own and though it is promoted as private in reality it is not because Cerberus is using others money to fund this venture and they are going to want a return on their investment. Chysler would have faired better maybe if it truely was a private buyer no dependant on return to pay their own investors.----------------- TheSnoMan.com
With all that said and if I was a betting man, the pensions and all the overhead will be go by by when they file chapter 11 and reorganize.
Coasty
I suspect you are right. I loom for them to try to break it up after a while to try to get theor money back. This is not a good time to be investing in or learning the auto bussiness. They are either going to force major consessions from unions or go banlrupt and have a fire sale.
----------------- TheSnoMan.com
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