Update: Cerberus has denied selling any of its stake in either Chrysler or GMAC. A spokesperson told Automotive News the report by the Financial Times newspaper is not accurate. “Cerberus hasn’t sold a nickel,” the spokesman said.
Original Story [Inaccurate]: Cerberus, the investment firm that famously bought Chrysler from Daimler last year, has sold “significantly” more than half of its stake in the automaker today. Cerberus might remain the largest shareholder, but it will no longer be the majority owner. Cerberus also shed most of its stake in the former GM financial arm, GMAC.
Cerberus invested some $7.9 billion to buy 51 percent of GMAC in 2006. The company paid nearly the same amount, $7.4 billion, for an 80.1 stake in Chrysler. The deals have turned into flops due to the credit crunch and high oil prices, according to the Financial Times.
According to the Times report, nearly 90 investors bought the shares, with some paying as much as $1 billion for an unspecified amount of shares in one or both companies. The companies involved in the purchases involve some of Cerberus’ own investors, and the sale means Cerberus will lower its risk.
It’s not known if Cerberus is selling the shares at a loss or profit.
