Agent009
Agent009
"If everything seems under control, you're just not going fast enough."
View My AgentSpace

Print this Page | Digg It | del.icio.us

Cerberus Denies Chrysler Sell Off
A published report today saying Cerberus Capital Management LP has sold more than half its stake in Chrysler LLC is not accurate, a senior Chrysler official told Automotive News today. "Cerberus has not sold any equity in Chrysler," said the Chrysler official speaking on condition of anonymity. "There are always co-investors at the time of the transactions so when they originally purchased 80.1 percent of Chrysler, there were co-investors at that time. They still own 80.1 percent." The Chrysler official declined further comment, referring inquiries to Cerberus. A Cerberus official was not immediately available.

The Financial Times reported today that Cerberus has sold "significantly" more than half of its stake in Chrysler and GMAC to a group of about 90 investors. The timing of those transactions was not clear. A spokesman for GMAC also could not be immediately reached for comment. Cerberus has faced troubles with both deals. Chrysler, like other major automakers, has been hurt by the sharp downturn in U.S. auto sales and the shift from higher-margin trucks to small cars. GMAC, meanwhile, has suffered from losses at its mortgage financing unit GMAC.

The Financial Times said that although Cerberus invested $7.4 billion in both transactions, it has since sold the majority of the equity to other investors, citing unnamed people familiar with the situation. Cerberus earned fees of up to $1 billion for the sale of its holdings as it unloaded risk to other investors, the newspaper said. The newspaper said investors in the group that bought stakes in the automotive assets from Cerberus included Cerberus-controlled Aozora Bank of Japan, Avenue Capital, Cyrus Capital Partners, Franklin Templeton Investments and Oak Hill Advisors.
Cerberus Denies Chrysler Sell Off



Comments:

Images hosted in your AgentSpace can now be posted in the comments section using the following syntax (case matters):
[img]IMAGE URL[/img]
Example: [img]http://agent004.myautospies.com/users/150/Sample-Gallery/sample1.JPG[/img]
zairnaimzairnaim - 6/2/2008 2:09:37 PM
+2 BoostDrop the Boost Up the Boost
who would buy chrysler anyways??

reply to this comment
EvoAudiEvoAudi - 6/2/2008 10:33:30 PMView My AgentSpace
0 BoostDrop the Boost Up the Boost
Maybe Nissan or possibly Ford?


BostonBiosafetyBostonBiosafety - 6/2/2008 7:24:06 PM
+1 BoostDrop the Boost Up the Boost
If you know the major players that run Cerberus, you know you can't trust them. Just like Carlyle Group...they have an agenda.

reply to this comment
YVR1YVR1 - 6/5/2008 8:32:48 PM
+1 BoostDrop the Boost Up the Boost
I thing Cerberus is going to carve Chrysler out and sell the pieces. They are worth more separate that the total. These guys are not car guys and could not care less about any body.

reply to this comment
To post a comment for this story, you must first Login.

If you do not have an account, you will need to Register (It's Free!).

Most Recent Stories
Capital One Cuts Off Dealer Financing For Inventory Purchases In New York And New JerseyToyota iQ will be badged as a Scion in the U.S.F1 boss’s daughter posses in a checkered flag for a causeNext-generation Mazda MX-5 could go hybrid or dieselToyota Says It Has Credit To Give, Just Fewer People Are Buying Their CarsToyota Readies To Extend 0% Financing ProgramNissan Already Using Black Box Data To Void GT-R Warranty ClaimsElectric Porsche 911 by Ruf breaks coverGM Shares Tumble to 58-Year Low as Credit Ratings Under Review Guess Which One Of These Cars is the Most Aerodynamic...Porsche considers a convertible version of the PanameraBMW considering X4 as a baby BMW X6MotorTrend tests new 2009 Infiniti G37s Sport Sedan 7-speed Auto......Match's BMW 335i performance times now. Report: Lexus will likely become a hybrid-only brandWho Has The Greenest Cars In The Land? The SGI Green Index Tells AllAston's Lagonda brand will build a Mercedes S-Class rivalDaimler won't sell Maybach luxury brandAudi takes Q7 3.0 TDI from NY to DC, gets 32 mpgUnofficial Camaro Z28 renderingsNissan offers Porsche free driving tipsToyota Predicts 40% Profit Shortfall and Will Miss Lowered Sales TargetsMazda Unwraps The Mazda3 Ahead Of Los Angeles Debut2010 Ford Mustang dashboard teaserSpy Shots: 2010 Nissan 370Z, the so-called 'baby GT-R'Bugatti to build large sedan with Bentley2009 Ford F-150 Lariat by SSE to debut at SEMABMW M5 UTE - Australian made El-Camino!BMW Ranks The Best Across The Board In Automotive Financing For 2008Chrysler won't build a Dodge Challenger ConvertibleToyota won't compete with Big 3 in the pickup segment this yearAudi's dedicated electric car to take on Lexus' dedicated hybridBMW-Mercedes alliance: the latest newsMercedes-Benz Cars with Four Percent Sales Increase for year to end of September leads the pack.Is THIS VW Based Entry Level Porshe The REAL Reason They Want Control of VW?Are Politicians Steering Us Towards Vehicular Communism?BMW Deliveries up 1.7% to 1.11 million automobiles for the year to end of September.Ford unveils radar-based Collision Warning with Brake Support systemHyundai introduces new high-performance V6 Lambda RS engine2008 Peugeot HYmotion3 Compressor2009 BMW 3-Series And X5d Photo Gallery: Even MORE to Like!2009 BMW 335dNo mid-engine for Corvette C7, V6 consideredLimited Edition 2009 BMW 7 Series Individual for Neiman MarcusGM Considers Selling Headquarters To Raise Cash2009 Ford Flex SEL AWD Review2009 Subaru Legacy 3.0R Premier Package ReviewSomebody Tell Audi There Is A Recession Going On - Sales Up 12.3% GloballyEXCLUSIVE PHOTOS: Did 001 Spy The Next BMW 5-Series, Progressive Activity Sedan Or Both?No Paris Motor Show for the Nissan GT-R V-SpecVolkswagen Outstrips Toyota To Be Worlds Biggest Market Value Automaker