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Automaker's owner in talks with Daimler to buy out its stake; more options for ventures cited.
WASHINGTON -- Daimler AG is in talks to sell its remaining stake in Chrysler LLC to majority owner Cerberus Capital Management LP, the companies confirmed Wednesday.
If the negotiations, initiated by Cerberus, are successful, it could be easier for the New York-based private equity firm to pursue other options for Chrysler, including joint ventures, partnerships or an outright sale, experts said.
"We can confirm that we are in talks with Cerberus regarding the redemption of our 19.9 percent interest in Chrysler," Daimler spokesman Han Tjan told The Detroit News.
The German automaker sold 80.1 percent of its stake in Chrysler to Cerberus in August 2007 in a $7.4 billion deal. The move to sell could end Daimler's association with Chrysler a decade after it bought the Auburn Hills automaker for $36 billion and reshaped the auto industry. Daimler has at least one member on Chrysler's board of directors, Gerd Becht.
If Cerberus purchased the remaining Daimler stake, the private equity fund would have a freer hand to enter into joint ventures without Daimler's consent and would also benefit from the fact that Daimler would no longer disclose any financial information about Chrysler, which it now is required to do.
Cerberus spokesman Peter Duda said the New York-based private equity fund "approached Daimler about the possible redemption of its 19.9 percent stake in Chrysler. We are currently in discussions."
He said the firms wouldn't drop their joint projects even if Daimler sold its remaining stake. The two automakers are working on a number of projects together, including diesel engines.
Chrysler also issued a statement saying that "common projects between Daimler and Chrysler in the areas of research and development and advanced technologies would continue."
Full Article:
Cerberus pursues all of Chrysler | The Detroit News | detnews.com
In short, Daimler is looking to unload the rest of their now junk shares in Chrysler.
M
WASHINGTON -- Daimler AG is in talks to sell its remaining stake in Chrysler LLC to majority owner Cerberus Capital Management LP, the companies confirmed Wednesday.
If the negotiations, initiated by Cerberus, are successful, it could be easier for the New York-based private equity firm to pursue other options for Chrysler, including joint ventures, partnerships or an outright sale, experts said.
"We can confirm that we are in talks with Cerberus regarding the redemption of our 19.9 percent interest in Chrysler," Daimler spokesman Han Tjan told The Detroit News.
The German automaker sold 80.1 percent of its stake in Chrysler to Cerberus in August 2007 in a $7.4 billion deal. The move to sell could end Daimler's association with Chrysler a decade after it bought the Auburn Hills automaker for $36 billion and reshaped the auto industry. Daimler has at least one member on Chrysler's board of directors, Gerd Becht.
If Cerberus purchased the remaining Daimler stake, the private equity fund would have a freer hand to enter into joint ventures without Daimler's consent and would also benefit from the fact that Daimler would no longer disclose any financial information about Chrysler, which it now is required to do.
Cerberus spokesman Peter Duda said the New York-based private equity fund "approached Daimler about the possible redemption of its 19.9 percent stake in Chrysler. We are currently in discussions."
He said the firms wouldn't drop their joint projects even if Daimler sold its remaining stake. The two automakers are working on a number of projects together, including diesel engines.
Chrysler also issued a statement saying that "common projects between Daimler and Chrysler in the areas of research and development and advanced technologies would continue."
Full Article:
Cerberus pursues all of Chrysler | The Detroit News | detnews.com
In short, Daimler is looking to unload the rest of their now junk shares in Chrysler.
M
