Chrysler Update

Filed in archive Hedgetalk on May 14, 2007

An article in the New York Times reported that DaimlerChrysler is close to selling Chrysler to hedge fund Cerberus Capital Management; "Chrysler on Verge of Sale to a Private Firm".

"Under the terms of the deal being discussed, DaimlerChrysler would keep about a 20 percent stake in Chrysler and would be freed from nearly $20 billion in pension and health care liabilities for Chrysler's current and retired workers. The liability would be transferred to a new company controlled by Cerberus."

The article also says, "The sale price was not clear, though executives said the primary value of the deal was in the assumption of Chrysler's costs. As a result, little or no money may change hands in the deal'.

Older stories;
DaimlerChrysler Wary Of Possible Hedge Fund Takeover
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DaimlerChrysler Update.