Daimler stops talks with Cerberus about 19.9% ​​Chrysler Stake

Daimler stops talks with Cerberus about 19.9% ​​Chrysler Stake Menghadirkan

Daimler stops talks with Cerberus about 19.9% ​​Chrysler Stake ,

Daimler stops talks with Cerberus about 19 9% Chrysler Stake

* update: Cerberus statement added after the jump

divorces always seem to end in the most bitter ways. The parent company of Mercedes-Benz Daimler issued a statement today edgy for the sake of negotiations with private equity firm Cerberus for the sale of 19.9% ​​stake in Daimler Chrysler LLC. Daimler, which temporarily stopped the negotiations, accused the owner of Chrysler LLC to make "exaggerated demands" that exceed the value of the investment of the private equity firm in Chrysler.

German automaker also said Cerberus claimed Daimler Chrysler has not run properly between signing and closing of the transaction, and that Daimler had provided incomplete information about the company. Daimler denied both allegations as "absurd" and "without substance".

DAIMLER STATEMENT

"negotiations between Daimler and Cerberus Capital Management LLC on the acquisition of 19.9% ​​stake in Daimler Chrysler holding LLC (" Chrysler ") and other issues Cerberus's investment in Chrysler have been made much more difficult in recent weeks due to exaggerated demands by Cerberus.

These requirements Cerberus exceed the value of 'Cerberus investment in Chrysler. to acquire an 80.1% interest in Chrysler, Cerberus had invested USD 7.2 billion. claims made now go beyond the scope contractually agreed possible obligations under the representations and warranties.

new claims also include an allegation of conduct outside the ordinary course of business by Daimler during the time between signing and closing of the transaction and that the allegation of incomplete information about the business. Daimler rejects these absurd allegations and derivative claims so as completely without substance. "

CERBERUS STATEMENT

"Cerberus and Chrysler have concluded that Daimler intentionally and materially breached its obligations under the relevant contracts relating to the Chrysler transaction. These serious violations include but are not limited to, misrepresentations relating to extraordinary changes in underwriting practices with regard to the financing of the acquisition of vehicles and leasing, as well as over lending practices and hire non ordinary.

"This conduct, among other reasons, led the parties to engage in lengthy negotiations to a mutually acceptable settlement. Daimler has unfortunately refused to recognize the seriousness of the allegations regarding his deliberate conduct that resulted in the impairment of Chrysler's business and added to and multiplied the adverse effects of the automotive environment and current macroeconomic. "

" We are disappointed that Daimler has refused to negotiate in good faith in the face of the plain facts of which they are aware. therefore, we consider our strategic options and we will have further comment after assessing the effects of Daimler's recent actions. "

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