Back to square one: DaimlerChrysler
finally could transfer its majority interest in Chrysler to
Dr. Dieter Zetsche, Chairman of the
Board of Management of DaimlerChrysler AG and Head of Mercedes
Car Group: “Today marks a new chapter in the history of our
company.” Extraordinary Shareholders’ Meeting to decide on
change of name on October 4, 2007 DaimlerChrysler
(stock-exchange abbreviation DCX) today completed the closing
for the transfer of a majority interest in the Chrysler Group
and for the related financial services business in NAFTA to a
subsidiary of Cerberus Capital Management, L.P., a
private-equity company based in New York.
A subsidiary of Cerberus takes over
80.1% in the Chrysler Holding LLC, while DaimlerChrysler retains
a 19.9% interest, as announced in May 2007. The effects on the
financial statements of DaimlerChrysler will be explained on
August 29, 2007.
Schrempp And Eaton in 1997 in merger mood
the conditions of the transaction and the economic effects have
not changed since the agreement was signed on May 14, 2007.
Furthermore, DaimlerChrysler and Cerberus have agreed to support
the financing of the majority takeover of Chrysler by Cerberus
in light of highly volatile US loan markets. Both companies will
subscribe $2 billion of second lien debt for Chrysler’s
automotive business, to be drawn within 12 months.
DaimlerChrysler’s portion will be $1.5 billion. The debt will be
priced at market conditions. One year after the closing,
DaimlerChrysler has the right to sell this loan in the credit
market. The maturity of this loan is 7 years.