Cerberus hires Bernhard to analyze Chrysler bid
Other than the obvious buyout by another car company - General Motors, two non-automotive companies have been interested in Chrysler - the Blackstone Group and Cerberus. Investment firm Blackstone is currently already in the auto industry, and has US$125 billion in the bank. It currently has 58% ownership in TRW and has a stake in American Axle. Cerberus is currently looking at Delphi, and already own 51% in GMAC.
Blackstone has been given access to confidential Chrysler data to determine whether the firm is worth buying or not, while Cerberus has hired Chrysler’s former COO to advise it on a possible bid. This former COO is none other than Wolfgang Bernhard, who was involved in turning Chrysler around to a short-lived earnings rebound a few years back, but somehow got booted off the team in 2004. He then joined Volkswagen, and left in January 2007.
Other companies said to be interested in possibly taking up stake in Chrysler include Magna International and General Motors.
March 16, 2007 @ 8:57 am
His final report is written as below:
Wow! Surprise, really surprise…..there are NOTHING, NOTHING, NOTHING……is worth to be invested. In fact I have been wasted a lot of time doing such kind of silly studied and analyzed. My recommendation to you is to GET OUT of the company and don’t ever turn your head back. You think Daimler is Stupid to let go a GOLD Mine to other? That’s all I have to comment. Thanks for your lunch and dinner and a nice trip to visit Chrysler corp. Also, thanks for the ROLEXs for me and my wife and my dogs.
Sincerely.
March 20, 2007 @ 5:32 pm
[...] the matter of who’ll Chrysler end up with, it seems that private equity groups are willing to pay alot more money than General Motors and automotive-related firm Magna [...]