Cerberus may be only serious bidder for Chrysler
Less than a week ago, we brought you a report saying Magna is the only serious bidder for Chrysler and that Cerberus was brought in to make it look like more parties were interested in buying. According to the Associated Press, if the plan was to throw reporters off the scent, it worked. The Detroit News and the Wall Street Journal both reported that private equity firm Cerberus is the front-running contender to take Chrysler away from the Germans.
The papers list Magna as an also-ran along with GM and Kirk Kerkorian.
So, if you were the German owner of a partially-restored, vintage American car company, who would you rather sell to? Your Russian-backed, Canadian parts supplier that has years of automotive experience or a U.S. equity firm with years of, um, private equity experience?
[Source: AP via Breitbart.com]
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Reader Comments (Page 1 of 1)
jgp 5:42PM (5/13/2007)
I'd rather Cerberus buys Chrysler. Remember, they've got Wolfgang Bernhard working for them.
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Brocktoon 6:12PM (5/13/2007)
Cerburus is a frick'n chop shop. They will run Chrysler into the ground and sell it for salvage after they are done firing everybody and giving themselves big bonuses. At least Magna would hve some vertical integration, and has a commitment to the auto industry, with Cerburus, it will be all about short-term money, and damn the future.
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raj 6:30PM (5/13/2007)
this is just to scare MAGNA ,,,,so that they can raise the bid to get the company.......remember DCX VALUED CHRYSLER AT "8 TO 9 BILLION DOLLARS".....
By keeping 20 TO 25 % stake in chrysler and getting 8 to 10 billion that chrysler had in the bank the time they merged in 1998 and 14 billion dollars that chrysler made them over the years,,,,this doesnt sound that bad of a deal for Daimler
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Barney 7:06PM (5/13/2007)
Cerburushas already dealt with Daimler when they bought that companies share of AerFinance. They bought 51% of GMAC and own a few rental car chains. This company can buy Chrysler and put in new management. What they cannot do is replace unions. They can also sell off what is undesirable within Chrysler.
This is the same company that bribed Jerry Lewis for defense contracts and a company chaired by GW Bush's "Secretary of the treasury".
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Josh Oliver 7:18PM (5/13/2007)
Cerberus already owns Chrysler...we've just yet to hear about it. At least, according to the AP, Wall Street Journal, Market Watch, etc.
It's set to be announced tomorrow.
Finally Wolfgang comes back to an American manufacturer...I just wish it were GM.
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F451 9:26PM (5/13/2007)
Chrysler is over. Many buyers are simple no longer interested in what they have to offer. Decades ago Chrysler truly meant something American—now it is a relic.
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.03 9:47PM (5/13/2007)
. Chrysler is over. Many buyers are simple no longer interested in what they have to offer. Decades ago Chrysler truly meant something American—now it is a relic.
Posted at 9:26PM on May 13th 2007 by F451
Did you not see the post that quoted Chrysler Group sales being UP 10% last month?????
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far jr 10:33PM (5/13/2007)
"Did you not see the post that quoted Chrysler Group sales being UP 10% last month?????"
Posted at 9:47PM on May 13th 2007 by .03
Have you looked at any fleets lately??? I see a much higher percentage of Chrysler vehicles in these fleets than I ever have before. Someone has to take up the slack where Ford and GM are cutting back. However I also know many diehard Chrysler fans who will buy from them until they no longer exist irregardless of ownership.
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Tool 10:39PM (5/13/2007)
I hope that Cerberus gets Chrysler. I think it is the best hope. Having a private equity firm run it will hopefully turn it around for good.
I don't like the idea of Magna. Never did and I think the deal to get a $1+ billion from that Russian dude probably didn't help.
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Barney 11:01PM (5/13/2007)
"Did you not see the post that quoted Chrysler Group sales being UP 10% last month?????"
10% of nothing is still nothing.
Chrysler is getting a lot from Daimler. This same company will have to rely on their own in-house engineering after the sale. They have bought engines and drive-trains from other manufactures before and people are starting to ask "who is making this car?" The Jeep line has had so many different engines and transmissions, you almost have to know the exact day it was built to know what parts to order. No company will make it if they can't stand on their own. Chrysler doesn't have a history of doing that. They are being bailed out again.
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