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DaimlerChrysler and Cerberus in
Chrysler buyout talks
BY OUR AUTOMOBILES CORRESPONDENT
March 21, 2007: Talks between
troubled automaker DaimlerChrysler and
private equity major Cerberus Capital
Management seem to be reaching a deal
with the equity giant proving itself
to be a potential suitor for the
struggling carmaker.
According to an industry report, the
private equity company has visited the
US base of DaimlerChrysler and
effected a full review of the auto
major’s finances and operations. Top
executives at Cerberus Capital
Management and Daimler Chrysler though
were not ready to immediately respond
on the development, reports say that
the deal might be struck. Another
report had earlier aid that a
confirmation on a potential buyer
could be available in a few months.
Chrysler is looking to cut 13,000
jobs, or 16% of its workforce, in an
effort to save $4.5 billion and bring
back profitability by year 2008.
Meanwhile, a buyout company called
Blackstone Group has been scouting for
the Chrysler pie with a $125-billion
purse. The company is also expected to
sit with Chrysler executives for talks
in this regard soon, said the report.
Speculation has Cerberus and
Blackstone had been bidding for
Chrysler had gained momentum in the
past few weeks.
Meanwhile, it is also learnt that
ex-Chrysler executive Wolfgang
Bernhard is likely to be roped in bail
out the loss-making auto giant by
aiding its turnaround plans.
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