Friday, July 13, 2007

Chrysler on track for deal with Cerberus, Zetsche says

Reuters |
July 12, 2007VANCE, Ala. (Reuters) -- Cerberus Capital Management is on track to conclude its $7.4 billion acquisition of Chrysler Group, DaimlerChrysler CEO Dieter Zetsche said on Wednesday, July 11.

"Everything is on track and it works according to plan," Zetsche told Reuters at the 10th anniversary celebrations of a DaimlerChrysler plant in Vance, Alabama.

His comments echoed remarks earlier on Wednesday, July 11, by Cerberus CEO John Snow who said the company was "confident" it had the financing to close the acquisition.

"There are no 'ifs' in that statement" from Snow, said Zetsche.

Cerberus agreed a deal to buy 80.1 percent of DaimlerChrysler's struggling U.S unit in May, allowing Germany's Daimler to unwind a merger with the No. 3 U.S. automaker under intense pressure from its own shareholders.

DaimlerChrysler shares fell more than 2 percent in European trading on market talk the sale could be running into financing difficulties. Daimler shares pared those losses in trading on the New York Stock Exchange after Snow's remarks.

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