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.
06/02, 1:06 PM
posted by:
RSPINAJR
WOW – say goodbye to the Chrysler Corp!
06/02, 1:20 PM
posted by:
Astonman12
shut the **** up.
06/02, 1:20 PM
posted by:
cookie4me
So there really isn’t any news.. ??
06/02, 1:29 PM
posted by:
400horseSS
Awwww Cerberus couldn’t pack their dogs bank accounts in a year, remember people the orkers are the ones you should feel sorry for not the million and billionaires.
06/02, 1:30 PM
posted by:
400horseSS
^workers
06/02, 1:35 PM
posted by:
howsmydriving
Cerberus is doing a good job given the constraints they’re forced to work with. They face huge obstacles in cleaning up the mess left by Daimler.
06/02, 1:49 PM
posted by:
Xile
Correction : “Cerberus hasn’t sold a nickel” He meant to say “Cerberus hasn’t made a nickel”
06/02, 2:40 PM
posted by:
HemiRoadRunner
400Horse: are you back to work yet now the strike is over?
06/02, 4:21 PM
posted by:
bolex
no news. just a dumb journalist trying to make a name for themselves.
06/02, 4:22 PM
posted by:
NoNameDenton1
People need to check their facts before printing stories like that.
06/02, 5:50 PM
posted by:
400horseSS
Last thursday Hemi.
06/02, 6:45 PM
posted by:
Commodore
bolex is right on
06/03, 4:42 AM
posted by:
The Stig
They haven’t sold any of it yet.
06/03, 10:45 AM
posted by:
jdasch1
As predicted…only in it for the flip of it. Private equity doesn’t run companies, they learn who to pawn them off to for a fee $$. Chrysler isn’t doomed, its just going to have new owners soon.
06/03, 3:21 PM
posted by:
bigp
just work it as ford did