Cerberus walks away from Delphi to focus on Chrylser
Over the past year, Cerberus has been actively pursuing a stake in Delphi, but as of yesterday, has pulled out of the running. The reason? It's not entirely clear, but the firm's quest to purchase Chrysler is at the forefront of many analysts' minds.
The move doesn't signify a reduction of interest by Cerberus towards the automotive sector altogether – they've got too many fingers in a lot of pies – but, instead, is seen as a way of concentrating the firm's focus on a possible Chrysler buyout.
This doesn't make Chrysler's cross-town competitor, General Motors, particularly happy, as the sale of Delphi is vital to the General's recovery plans. Additionally, the decision by Cerberus to walk away from talks may have been influenced by a breakdown in talks with the UAW, something that will be a necessity if Cerberus plans to make nice during their acquisition of Chrysler.
There's more to follow in the coming months, so as always, watch this space.
[Source: Detroit News]
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