Thai
Elite Member
By MATT MOORE and TOM KRISHER, AP Business Writers
FRANKFURT, Germany - DaimlerChrysler AG will sell 80.1 percent of its money-losing Chrysler Group to private equity firm Cerberus Capital Management LP for $7.4 billion, the company announced Monday, undoing a 1998 merger aimed at creating a global auto giant.
The German-American automaker said in a statement that an affiliate of Cerberus will hold the majority stake in a new Chrysler Holding LLC while DaimlerChrysler will keep a 19.9 percent stake.
It said that Chrysler would keep its heavy obligations for pensions and health care costs, a key issue complicating DaimlerChrysler's effort to sell the division.
The first thing to go will be the company name, with Daimler AG to replace DaimlerChrysler. A vote by shareholders to approve the change must be held first, likely this fall, the company said.
"We're confident that we've found the solution that will create the greatest overall value
FRANKFURT, Germany - DaimlerChrysler AG will sell 80.1 percent of its money-losing Chrysler Group to private equity firm Cerberus Capital Management LP for $7.4 billion, the company announced Monday, undoing a 1998 merger aimed at creating a global auto giant.
The German-American automaker said in a statement that an affiliate of Cerberus will hold the majority stake in a new Chrysler Holding LLC while DaimlerChrysler will keep a 19.9 percent stake.
It said that Chrysler would keep its heavy obligations for pensions and health care costs, a key issue complicating DaimlerChrysler's effort to sell the division.
The first thing to go will be the company name, with Daimler AG to replace DaimlerChrysler. A vote by shareholders to approve the change must be held first, likely this fall, the company said.
"We're confident that we've found the solution that will create the greatest overall value
