The King of Wall St. wants Chrysler
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The King of Wall St. wants Chrysler
Could be a good thing, though it would be nice to see Chrysler back under American ownership.
Detnew.com
Detnew.com
The hottest buyout firm on Wall Street is seriously eyeing an acquisition of the Chrysler Group.
Blackstone Group, a private-equity giant with stakes in more than 100 companies, has emerged as a leading contender to buy the troubled U.S. division of German automaker DaimlerChrysler AG, people familiar with the situation told The Detroit News.
Blackstone, led by high-flying Chairman Stephen Schwarzman, is among a handful of corporate suitors that has been given access to confidential business data about Chrysler, which was put up for sale last month.
Other possible buyers include Cerberus Capital Management, which is also trying to acquire bankrupt Delphi Corp., and General Motors Corp., which has been in talks with DaimlerChrysler about a potential Chrysler deal since December.
Additional private-equity firms also could enter the fray in what is shaping up as a heavyweight contest for control of Chrysler, the one-time No. 3 automaker in the U.S.
But it's Blackstone -- armed with a $125 billion corporate war chest -- that for now casts the biggest shadow over Chrysler.
Blackstone Group, a private-equity giant with stakes in more than 100 companies, has emerged as a leading contender to buy the troubled U.S. division of German automaker DaimlerChrysler AG, people familiar with the situation told The Detroit News.
Blackstone, led by high-flying Chairman Stephen Schwarzman, is among a handful of corporate suitors that has been given access to confidential business data about Chrysler, which was put up for sale last month.
Other possible buyers include Cerberus Capital Management, which is also trying to acquire bankrupt Delphi Corp., and General Motors Corp., which has been in talks with DaimlerChrysler about a potential Chrysler deal since December.
Additional private-equity firms also could enter the fray in what is shaping up as a heavyweight contest for control of Chrysler, the one-time No. 3 automaker in the U.S.
But it's Blackstone -- armed with a $125 billion corporate war chest -- that for now casts the biggest shadow over Chrysler.
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I question how good of a thing this really is. Will they let actually let the company run, and give it the money needed to sustain itself with good products? Will it sell everything off and put everyone out of work? I tend to think this wouldn't happen, because to me they'd lose more than they'd gain, once all liabilities are considered.
However, selling excess plant capacity to Toyota and Nissan might work out. Mark my words...American ownership might be nice, but then again once must ask WHY would these people want to own a losing entity in a volatile market? Something smells really, really fishy here...
However, selling excess plant capacity to Toyota and Nissan might work out. Mark my words...American ownership might be nice, but then again once must ask WHY would these people want to own a losing entity in a volatile market? Something smells really, really fishy here...
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FWIW, these guys are majority owners of TRW Automotive Holdings and formerly as a key investor in American Axle and Manufacturing. Also, I think the artical said they were interested in buy Delphi.
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