German publication Manager Magazine is reporting that the two are in talks, citing unidentified company sources that said a sale could be possible within weeks.
Cerberus announced the deal to buy 80.1% of Chrysler
and its related financial services business from Germany's
DaimlerChrysler for €5.5 billion ($7.41 billion) in May 2007. The deal,
which closed in August 2007, called for Cerberus to inject $5 billion
directly into Chrysler and $1.05 billion into Chrysler Financial
Services LLC. The buyout shop paid $1.35 billion to Daimler, but the
German company had to extend a $440 million loan to Chrysler.
A sale of its remaining equity would only make sense for Daimler if the
German carmaker forgave the debt it provided at the time of the
buyout. If Cerberus could reduce Chrysler's debt load and pay a small
price for the equity, it might improve Chrysler's
financial position. - George White
See story from Reuters
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In spite of having a tough time turning around Chrysler LLC, the automaker's private equity owner Cerberus Capital Management LP reportedly is negotiating to buy the remaining 19.9% that it does not own from German automaker Daimler AG.
The three headed dog at the gates of hell has finally lost its final head. First GMAC, then Mervyns, now doubling down on Chrysler. Meanwhile all their buddies that invested in their foolish follies are bleeding as well. Shoulda stayed a hedge fund and avoided the PE game.