Chrysler Scraps $12 Billion Sale of Loans for Auto Business, Investors Say

(Bloomberg) -- Chrysler abandoned plans to sell
$12 billion of loans to complete its purchase by Cerberus
Capital Management LP after investors balked at purchasing the
high-yield, high-risk debt, according to investors who were
briefed on the decision.

The unit of DaimlerChrysler AG scrapped the sale of loans
linked to its automotive business after failing to find demand,
said the investors, who declined to be named because the terms
aren't public. Banks led by JPMorgan Chase & Co. will assume $10
billion of that debt and Cerberus and DaimlerChrysler agreed to
buy the remaining $2 billion, the investors said.


Read more at Bloomberg Bonds News

RLPC-UPDATE 1-Chrysler Corp postpones $12 bln auto loan deal

(Reuters) - The automaker is raising cash to help fund Chrysler Group's
buyout from DaimlerChrysler AG by Cerberus Capital
Management.




The buyout is still expected to close because underwriters
remain committed to providing financing, market sources told
RLPC.


Read more at Reuters.com Mergers News

UPDATE 1-Chrysler's bankers may take on debt-WSJ

(Reuters) - Chrysler is being spun off by German parent DaimlerChrysler
in a $7.4 billion deal with Cerberus Capital
Management [CBS.UL].




Chrysler's bankers -- including J.P. Morgan Chase & Co.
, Goldman Sachs Group Inc. , Citigroup Inc.
, Bear Stearns Cos. and Morgan Stanley --
have spent the past month trying to convince investors to buy
$12 billion in loans for Chrysler's auto business and $8
billion in loans for its financial arm, according to the
report.


Read more at Reuters.com Mergers News

Daimler down on talk of Chrysler financing problems

(Reuters) - FRANKFURT, July 11 - DaimlerChrysler shares fell more than 2 percent on Wednesday on market talk of possible financing difficulties for the sale of U.S. carmaking arm Chrysler to Cerberus, traders said, but Daimler said it was not aware of any difficulties.



Traders cited talk that Cerberus [CBS.UL] had difficulties financing the purchase of Chrysler, a deal made in May this year and which is scheduled to close in the third quarter.


Read more at Reuters.com Bonds News

Cerberus may sell Imperial Hotel stake: Nikkei

(Reuters) - The news sent Imperial Hotel's shares up by their daily limit of 500 yen, or 11.4 percent, to 4,880 yen in afternoon dealings.




Based on Monday's closing price, the hotel had a market value of 145 billion yen , valuing Cerberus's stake at about 58 billion yen.


Read more at Reuters.com Business News

BCE takeover battle may not be over yet: report

(Reuters) - One of the losing BCE suitors, U.S. buyout firm Cerberus Capital Management LP, has not given up its pursuit of BCE, the newspaper reported, citing a source close to Cerberus.




"It's not over until we say it's over," it quoted the source as saying.


Read more at Reuters.com Business News

DaimlerChrysler CEO sees good years ahead: paper

(Reuters) - DaimlerChrysler announced in May it would sell an 80.1-percent stake in Chrysler Group to private equity firm Cerberus Capital Management , unwinding the 1998 merger of Daimler-Benz and Chrysler that never worked out as planned.




Zetsche pointed out that the risk of being taken over by a financial investor was much lower after the sale.


Read more at Reuters.com Business News

Chrysler commits to new hybrids, better mileage

(Reuters) - CHELSEA, Mich., June 21 - Chrysler Group on Thursday said it would roll out new hybrid vehicles, streamline its cars and trucks and introduce more diesel engines in a bid to improve the fuel economy of its product line-up.



Chrysler, which is being acquired by Cerberus Capital Management in a $7.4 billion deal, has trailed other major, competing automakers in key indicators of fuel economy.


Read more at Reuters.com Bonds News

GM, Ford Trounce Toyota's Shares, Bonds; Chrysler Buyout Buoys Investors

(Bloomberg) -- In case you missed it, General Motors
Corp. and Ford Motor Co. outperformed Toyota Motor Corp. in the
stock market the past 12 months. The next year may be no
different as Cerberus Capital Management LP seeks to turn
Chrysler around.

Armed with a $12 billion war chest, the private-equity firm
can take a hard line in July-to-September labor contract talks
with the United Auto Workers. That will benefit all of the Big
Three U.S. automakers because contract settlements at one company
usually form the basis for agreements at others, analysts said.


Read more at Bloomberg Stocks News