File this one under “head-scratching decisions.” Cerberus is currently trying to buy the rest of Chrysler from Daimler AG. Is this really the best time to increase your stake in an ailing automaker?
NY Times: Cerberus Capital Management said Wednesday that it was negotiating to buy Daimler AG‘s 19.9-per cent stake in Chrysler, a move that could pave the way for further changes at the American automaker.
Cerberus bought 80.1 per cent of Chrysler a year ago for $7.4 billion, ending the troubled nine-year marriage between Daimler and Chrysler.
Since then, Chrysler’s automotive operations have struggled amid speculation that Cerberus might be looking to sell the business or align Chrysler with a foreign automaker.
The real winner in such a sale: Daimler.
Bloomberg via New York Post: Chrysler continues to damp Daimler’s earnings, erasing 373 million euros ($548 million) from second-quarter profit. Daimler bought Chrysler in 1998 for $36 billion.
“It would be a surprisingly positive development, though we’re not talking about a lot of money here. It would be close to zero,” said Juergen Pieper, an analyst at Bankhaus Metzler in Frankfurt.
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