Friday, June 06, 2008
Cerberus denies Chrysler sale claims
Reports that 50 per cent stake has been sold are unfounded
Cerberus Capital Management has denied reports that said it sold half its stake in Chrysler and GMAC.
The Financial Times reported that the private equity firm had made the sale to about 90 investors for as much as $1bn (£510m), but Cerberus has said this is untrue.
The company said in a statement: “Cerberus has not reduced or made any changes to its equity stakes in GMAC or Chrysler since the closing of either transaction. Cerberus continues to have voting control over both investments.
“It is common knowledge, and has been widely reported, that Cerberus made these investments side-by-side with its co-investors at the time of closing.
“Our commitment to these companies has not changed.”
Cerberus has had problems with both companies, with Chrysler hit by the sharp downturn in US car sales and GMAC suffering losses.
Last year, Cerberus acquired 80 per cent of Chrysler and invested $7.4bn in the manufacturer.
DATED: 06.06.08
FEED: MT
Cerberus Capital Management has denied reports that said it sold half its stake in Chrysler and GMAC.
The Financial Times reported that the private equity firm had made the sale to about 90 investors for as much as $1bn (£510m), but Cerberus has said this is untrue.
The company said in a statement: “Cerberus has not reduced or made any changes to its equity stakes in GMAC or Chrysler since the closing of either transaction. Cerberus continues to have voting control over both investments.
“It is common knowledge, and has been widely reported, that Cerberus made these investments side-by-side with its co-investors at the time of closing.
“Our commitment to these companies has not changed.”
Cerberus has had problems with both companies, with Chrysler hit by the sharp downturn in US car sales and GMAC suffering losses.
Last year, Cerberus acquired 80 per cent of Chrysler and invested $7.4bn in the manufacturer.
DATED: 06.06.08
FEED: MT
