Cerberus buys majority of Chrysler for 5.5 bln euro (Reuters)

[Eugene]

Source: Reuters

Cerberus buys majority of Chrysler for 5.5 bln euro

1 hour, 5 minutes ago

FRANKFURT (Reuters) - Cerberus Capital Management will acquire
an 80.1 percent stake in DaimlerChrysler's (DCXGn.DE) struggling
Chrysler Group division and its related financial services business
for 5.5 billion euros ($7.41 billion), DaimlerChrysler said on Monday.

The deal calls for Chrysler to retain obligations for pensions and
healthcare costs and will result in a net cash outflow of 0.5 billion
euros for DaimlerChrysler, the world's fifth-biggest carmaker said
in a statement.

DaimlerChrysler shares extended gains on the news and were up
more than 7 percent by 0841 GMT.


Link: http://news.yahoo.com/s/nm/20070514/bs_nm/daimlerchrysler_deal_dc

[Eagle_Eye]

1. We are witnessing the demise of the American automobile industry

Here we have one more item showing the end of American car manufacturing which has pretty much went into a steep dive under bush's leadership.
While bush was in office we saw
Gasoline prices through the roof
Gutting of our car industry
And a needless war for oil profits

Need I say it is time to impeach bush?

[leveymg]

3. Cerberus, a "vulture capital" firm - Chrysler will be broken up and

liquidated. Cerberus' business model is to buy ailing companies and sell off their assets. It's also a major conduit for foreign campaign contributions to the Republican Party, is at the center of several major defense and intelligence scandals, and is intimately tied to the Bush White House. This outfit is as bad as it gets.

Look at what happened to Walter Reed after its operations were privatized by a Cerberus company. The company was downsized, and everything outsourced, regardless of the erosion of services.

The UAW should fight this, like there's no tomorrow. See, http://www.dailykos.com/story/2007/3/10/21556/5045

Larger CIA and DoD Privatization Scandal Emerging from Walter Reed Story, US Attorneys Firing
by leveymg
Sat Mar 10, 2007 at 03:58:42 AM PDT
Rumsfeld and Top GOP Figures Profited from Privatization of VA Hospital, CIA Contractors

A large global hedge fund, Cerberus Capital Management (dba, Cerberus-Gabriel), is at the center of an emerging Pentagon and CIA contracting scandal that has the attention of three Congressional Committees.

In each case, the companies under investigation have links to prominent GOP figures, including Vice President Dick Cheney, former Vice President Dan Quayle, former Defense Secretary Donald Rumsfeld, and several Republican Congressmen indicted for corruption involving kickbacks from defense contractors. The Republican Congressional Campaign Commitee (RCCC) has also received substantial contributions from conservative fund managers running Cerberus, a virually unregulated $30 billion hedge fund, which owns the second largest bank in Israel.

This scandal involves the mismanagement of VA hospital facilities privatized during the Bush-Cheney Administration, as well as intelligence abuses by private CIA contractors.

MORE below the fold . . .

leveymg's diary :: Permalink :: There's more... (608 comments)

[DemReadingDU]

6. Here is link to earlier thread on DU

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=377023

I had this bookmarked, lots of good info here, Thank you, leveymg!

[Nimrod2005]

2. Very sad, they paid $36 billion for it.....nt

[SoCalDem]

4. Gee how "special" The "money-honey" was apoplectic while she described

how wonderful it was going to be for the bottom line, now that Chryzzzzler could "divest itself" of the EXPENSIVE pension and health benefits for American automakers :puke:

[DemReadingDU]

5. 4/4/06 GM sold 51 pct of GMAC to Cerberus group

http://sg.biz.yahoo.com/060403/3/3ztk8.html


also I think Cerberus was interested in Delphi earlier this year, but maybe has concentrated on Chrysler instead?

[DemReadingDU]

7. afternoon kick

[mainegreen]

8. 'Cerberus'? They named their company after a gaint three headed monster dog guarding hell?

Way to be subtle. I can't wait until somebody starts a company called 'We fucking own you LTD' or 'Greedy Monopolistic Bastards Inc' and we can do away with all the pretenses.

[entanglement]

9. 'Capital Management' is doublespeak for asset-stripping, job-slashing, wage-cutting vultures

n/t