Check out this in-depth look at the role Chrysler Financial played in Cerberus chief Steve Feinberg’s decision to buy Chrysler from Daimler. The article offers a play-by-play of how the deal evolved and what ultimately went wrong.
From the article:
According to five people who heard Cerberus’s Chrysler pitch, all of whom requested anonymity because of confidentiality agreements, Mr. Feinberg’s deputies valued the financing unit more than the auto operation. In fact, the deputies believed, the finance unit’s value covered the cost of buying Chrysler, making the car company something of a bonus — if that part of the investment worked out, great; if not, Cerberus could still profit on the finance unit.
Despite high hopes, the deal crumbled. From the article:
Cerberus now values its Chrysler stake at 19 cents on the dollar. It is a humbling and embarrassing figure for Mr. Feinberg. But it’s better than zero cents on the dollar, which is what his stake might have been worth had the government not bailed him out.
