Cerberus snag digesting Chrysler?
The euro has reached a record high against the dollar, and that is partly to blame for rumors of Cerberus' difficulty in getting the money to pay for Chrysler. Cerberus is paying DaimlerChrysler $7.4 billion for 80.1% of Chrysler Group, but it is trying to borrow $20 billion. With interest rates on the rise, Cerberus wants to get money while terms are at their best. Yet with the market enduring a soft spot, Chrysler's below-investment-grade credit ratings, its 2-year prognosis of more red ink and the dollar declining, skittish investors are concerned that Cerberus might not be able to get the job done. Cerberus Chairman John Snow, however, said he expects the deal to close this quarter as planned.
[Source: Bloomberg]
_opt_thumbnail.jpg)
_thumbnail.jpg "2011 Audi A8: Live from Miami")
Reader Comments (Page 1 of 1)
Jeff 6:23PM (7/12/2007)
Ok, Autoblog, can you please report on a news when it is done? Or atleast dont say its done if its not done? Last month you said Cerberus deal went through and everything is done. Now you are saying they haven't even paid off Benz yet, and are running around looking for money? Has Chrysler been sold or not?? Final Answer Please!
Reply
Seminole 7:18PM (7/12/2007)
Chrysler has been sold. The payment has not taken place yet. You can't expect Cerberus to have walked in with a suitcase of 7.4 billion dollars.
wally 6:45PM (7/12/2007)
The can get loan from their Japanese Bank!!!
Reply
Barney 12:13AM (7/13/2007)
"that is partly to blame for rumors of Cerberus' difficulty in getting the money to pay for Chrysler."
Not so! The Canadian dollar has also risen and that's nothing to do with an American investment company. The bank of Canada is raising interest rates to devalue the dollar to make exports more attractive. The United States has a shrinking dollar and the Euro is becoming more of the global currency because of it.
The deal is not done if Cerberus don't come up with the money. Cerberus didn't anticipate the deflating American currency.
Reply
bmoredlj 9:52AM (7/13/2007)
Cerberus has had problems before. Hercules wrestled him into submission, Orpheus lulled him to sleep with music, Hermes put him to sleep with water from the river Lethe,
Sybil of Cumae took him out with drugged honeycakes, and Virgil threw a body part at him, distracting him and allowing Virgil and Dante to pass. This is nothing new.
Reply