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Though the figure head chairman of Cerberus Capital is former Bush treasury secretary John Snow, the real power lies with the firm's founder, Jew Steve Feinberg.
London, England (AHN) - Private equity firm Cerebrus Capital Management said Monday it has agreed to buy a majority of stake in DaimlerChrysler's ailing Chyrsler unit.
Cerebrus agreed to acquire 80.1 percent of the U.S. auto unit.
Shares of DaimlerChysler went up 7 percent on news of the deal. The firm has been trying to spin off its unprofitable Chrysler wing for some time now.
The deal states that the German-American firm will retain a 19.9 percent stake in the company and Chrysler is still liable to pay pension and healthcare costs for its employees.
Cerebrus reportedly made a higher bid than auto-parts manufacturer Magna International Inc. and private equity firms Balckstone Group and Centerbridge Capital Partners LP for the automaker.
CBS MarketWatch reported John Snow, chairman of Cerberus Capital Management, as saying, "Cerberus believes in the inherent strength of U.S. manufacturing and of the U.S. auto industry. Most importantly, we believe in Chrysler."
"We are aware that Chrysler faces significant challenges, but we are confident that they can and will be overcome," he added.
DaimlerChrysler CEO Dieter Zetsche said in a statement, "We very much look forward to our continued cooperation as business partners, as we want to continue to reap the mutual benefits of working together. That's one of the reasons why we're retaining a 19.9 percent equity position in Chrysler."
Posted : 14/05/2007 10:33 am