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Cerberus walks away from Delphi to focus on Chrylser
One of the major players in the acquisition of bankrupt mega-parts supplier, Delphi, is Cerberus Capital Management. That name should ring familiar to anyone following the ongoing saga of the (potential) sale of Chrysler, as Cerberus is one of the three firms making a play for the ailing side of the German-American hybrid.
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]
