Daimler Wants Out of Chrysler, Totally

September 24, 2008
Both Daimler AG and Cerberus Capital Management LP confirmed today that the former company is officially considering selling the latter its remaining 19.9 percent stake in Chrysler, said The Detroit News.

Daimler sold 80.1 percent of its stake in Chrysler To Cerberus in the summer of '07.

Rumor of the transaction leaked out of a German magazine, and Daimler confirmed it earlier today. Cerberus, a New York private equity fund, approached Daimler about a proposed purchase. Cerberus spokesman Peter Duda describes the two companies as "currently in discussions," and maintains that "all existing industrial relationships" between the companies would remain intact if the purchase goes forward. Industrial relationships would include Daimler and Chrysler's joint diesel engine projects, currently underway.

At the harsh ending of what was once touted a "merger of equals," Daimler wrote down the value of its stake in Chrysler from 916 million euros at the close of 2007 to to 171 million euros at the end of June 2008.--Colin Mathews

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