Equity Giant Considers Chrysler Buyout
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DaimlerChrysler AG’s stock jumped almost 4% yesterday as Cerberus Capital Management emerged as the latest suitor for Chrysler after the private-equity giant reportedly met with the struggling automaker to discuss a potential bid.
Cerberus is the first Wall Street investor to visit DaimlerChrysler’s American headquarters for a full review of the company’s finances and operations. Blackstone Group, a buyout firm with $125 billion in its war chest, will meet this week, according to the Detroit News.
New York-listed shares of the German-American manufacturer hit a seven-year high of $74.53 last month when DaimlerChrysler Chief Dieter Zetsche put all options “on the table” with regard to the fate of Chrysler.
Since then, speculation has Cerberus and Blackstone potentially bidding for Chrysler against other investment groups and perhaps even General Motors.
Cerberus and Chrysler didn’t immediately respond to requests for comment.
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 2008.
Chrysler chief executive Tom LaSorda said late last month that any official word on the frenzied chatter surrounding a potential buyer could be months away.
Also, former Chrysler executive Wolfgang Bernhard may be tapped to help out the loss-making car maker’s turnaround plans, the Detroit paper said.
