Is Cerberus already bailing out of Chrysler?
June 2, 2008
As soon as Cerberus bought 80.1 percent of Chrysler, there were questions about the private equity firm's long-term commitment to the American automaker. This morning, the Financial Times reports that Cerberus has sold more than half its equity in Chrysler and GMAC to about 90 investors. Cerberus and Chrysler officials deny the report.
"Nothing has changed," a Cerberus spokesman said about its investments in Chrysler and GMAC.
In 2006, Cerberus and a group of investors acquired a 51 percent stake in GMAC for about $14 billion. A year later, Cerberus took an 80.1 percent stake in Chrysler. Since then, Cerberus has had trouble squeezing profit from either company.
The Financial Times says Cerberus received fees up to $1 billion for the sale of investments. Stay tuned to this space as there's likely more to come on this story.