The sale has been finalized.
Daimler Chrysler has announced that they've completed the transaction which effectively transfers a majority interest in Chrysler to Cerberus. Of the transaction, Daimler Chrysler head Dieter Zetsche said "today marks a new chapter in the history of our company."
As announced back in May, 19.9% of the company's interest remains in German hands, while the remainder is transferred to Cerberus Capital Management, L.P., a private-equity company based in New York. Reports say that for the most part, the agreement was identical to that discussed earlier in the year.
Daimler Chrysler AG will then likely be renamed "Daimler AG", though this decision will be discussed at a shareholders meeting in the fall.
DaimlerChrysler and Cerberus have agreed to support the financing of the majority takeover of Chrysler by Cerberus in light of highly volatile US loan markets. Both companies will subscribe $2 billion of second lien debt for Chrysler's automotive business, to be drawn within 12 months. DaimlerChrysler's portion will be $1.5 billion. The debt will be priced at market conditions, and one year after the closing, DaimlerChrysler has the right to sell this loan in the credit market.
The effects on the financial statements of DaimlerChrysler will be explained on August 29, 2007.
photo:Chrysler
Daimler Chrysler has announced that they've completed the transaction which effectively transfers a majority interest in Chrysler to Cerberus. Of the transaction, Daimler Chrysler head Dieter Zetsche said "today marks a new chapter in the history of our company."
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As announced back in May, 19.9% of the company's interest remains in German hands, while the remainder is transferred to Cerberus Capital Management, L.P., a private-equity company based in New York. Reports say that for the most part, the agreement was identical to that discussed earlier in the year.
Daimler Chrysler AG will then likely be renamed "Daimler AG", though this decision will be discussed at a shareholders meeting in the fall.
DaimlerChrysler and Cerberus have agreed to support the financing of the majority takeover of Chrysler by Cerberus in light of highly volatile US loan markets. Both companies will subscribe $2 billion of second lien debt for Chrysler's automotive business, to be drawn within 12 months. DaimlerChrysler's portion will be $1.5 billion. The debt will be priced at market conditions, and one year after the closing, DaimlerChrysler has the right to sell this loan in the credit market.
The effects on the financial statements of DaimlerChrysler will be explained on August 29, 2007.
photo:Chrysler