Chrysler sale update: Wall St. more interested than automakers
Since Daimler Chrysler CEO Dieter Zetsche declared 'all options are open' with regards to a possible Chrysler sale, the rumors have been flying. With the exception of GM and Magna, every automaker that comes up as a potential suitor has politely denied the rumor. VW, Hyundai, and Ford have all denied interest in Chrysler, and the Chinese automakers haven't exactly gotten in line to throw their names in the hat.
Surprisingly, over the past few weeks Wall St. has shown some of the strongest interest in the Chrysler brand. Blackstone Group, an investment company with a whopping $125 billion in its corporate war chest, has emerged as one of Chrysler's potential suitors. In fact, the company was already given access to confidential business data about Chrysler.
Blackstone already has seen success in the automotive sector with a 56% ownership in TRW and a stake in American Axle. Another investment firm that has been eying Chrysler has been Cerberus. The company leads a group of investors looking at bankrupt Delphi and they already own a 51% stake in GMAC.
[Source: Detroit News]
Many automakers are just trying to survive right now because of intense competition and pressure from Wall Street. Buy a struggling company and watch your stock take a dive. Notice ever since the Chrysler sale news hit the street Daimler stock has skyrocketed. We wonder what would happen to Blackstone or Cerberus stock if they obtain Chrysler. One thing is certain, though. If it is taking this long for the Aston Martin sale to be completed, we think a Chrysler sale may take the rest of the decade.
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