Cerberus, Daimler end talks over Chrysler share

Cerberus Capital Management won’t be picking up the remaining 19.9 percent of Chrysler anytime soon.

Speaking to reporters after the unveiling of the 2010 Mercedes-Benz E350 CGI at Detroit’s Westin Book Cadillac Hotel, Dieter Zetsche, CEO of Daimler AG and past CEO of Chrysler, said talks between the German automaker and Cerberus have ended after the financial holding company made what Zetsche described as “unreasonable” demands.

Zetsche’s remarks were the latest salvo in the war of words being waged by Cerberus and Daimler. Cerberus is accusing Daimler of having damaged Chrysler and Daimler accuses Cerberus of making demands that go beyond the contractual agreements of the sale.

Cerberus is at a disadvantage because Daimler’s share makes it difficult for Cerberus to pursue potential mergers or partnerships. Since Daimler’s share is of the entire company, Cerberus would have trouble even selling a brand.

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