Cerberus nears deal to buy remaining Chrysler stake

October 17, 2008 - 12:01 am ET

NEW YORK (Reuters) -- Private equity firm Cerberus Capital Management LP is
nearing a deal to buy Daimler AG's remaining stake in Chrysler LLC, sources
familiar with the talks said.

Cerberus is in talks with various automakers including General Motors and
Renault SA involving alliances or a sale of all or part of Chrysler, sources
have told Reuters.

Any such deal would hinge on Cerberus acquiring the 19.9-percent stake of
the third-largest U.S. automaker it does not already own, the sources said.
Daimler has no interest in participating in a merger between Chrysler and
another automaker, a person familiar with the German automaker's planning
said earlier this week.

Cerberus declined comment while Daimler could not be immediately reached.