Cerberus to reportedly lose stake in Chrysler as part of bailout deal
According to The Wall Street Journal, Cerberus Capital Management is set to shed its stake in Chrysler as part of the conditions surrounding the company's bailout arrangement with the U.S. government.
According to the article, the financial paper cites an anonymous source within the Obama administration as effectively saying that "Cerberus' equity stake no longer holds value" and "...the firm's ownership will come to an end."
According to the WSJ's sources, Cerberus will still hold on to a controlling stake in Chrysler Financial, but its stake in the automaker itself will likely be eviscerated. Such a move could make it easier for Chrysler and Fiat to come to terms on their alliance within the next 30 days (a deadline given to them by the Obama administration yesterday).
[Source: The Wall Street Journal]