Cerberus would give up profits from Chrysler sale to get bailout
In exchange for help from Uncle Sam, Cerberus Capital Management says it would be willing to give up any profit on a future sale of Chrysler LLC. In addition, Chrysler would expect the government to take a stake in the company in any bailout.
The statements came in a speech delivered yesterday by Chrysler CEO Bob Nardelli at Ernst & Young’s Strategic Growth conference in Palm Desert, California. Nardelli also said “it would be very difficult to make it through this unprecedented downturn” without federal aid.
Chrysler hopes the no-profit pledge will quell some of the Congressional opposition to helping a private-equity buyout firm like Cerberus.
“This is not about losing a company,” Nardelli said. “This is about potentially losing an industry. Because of the interdependence of the supplier network, the railroads, truckers, the impact goes much further.”
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