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| Version 5 | Version 6 |
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| Cerberus to buy Chrysler majority | Cerberus to buy Chrysler majority |
| (about 1 hour later) | |
| US private equity firm Cerberus Capital Management is to buy a majority stake in car firm DaimlerChrysler's ailing US Chrysler arm. | US private equity firm Cerberus Capital Management is to buy a majority stake in car firm DaimlerChrysler's ailing US Chrysler arm. |
| The firm will pay 5.5bn euros ($7.41bn; £3.7bn) buy 80.1% - significantly less than the $36bn paid for Chrysler's 1998 merger with Daimler-Benz. | The firm will pay 5.5bn euros ($7.41bn; £3.7bn) buy 80.1% - significantly less than the $36bn paid for Chrysler's 1998 merger with Daimler-Benz. |
| DaimlerChrysler shares rose 6.4% in afternoon trade on the German market. | DaimlerChrysler shares rose 6.4% in afternoon trade on the German market. |
| The German-American firm will keep a 19.9% stake in the firm but Chrysler must foot pension and healthcare costs. | The German-American firm will keep a 19.9% stake in the firm but Chrysler must foot pension and healthcare costs. |
| 'Right conditions' | 'Right conditions' |
| The deal was sealed after two months of talks between an array of potential bidders interested in buying the US operation. | The deal was sealed after two months of talks between an array of potential bidders interested in buying the US operation. |
| It marks the reversal of a landmark deal in the automotive industry. | It marks the reversal of a landmark deal in the automotive industry. |
| We have created the right conditions for a new start for Chrysler and Daimler Dieter Zetsche, chief executive DaimlerChrysler | We have created the right conditions for a new start for Chrysler and Daimler Dieter Zetsche, chief executive DaimlerChrysler |
| The future of Chrysler has been in the balance recently as it battled against huge losses that hit $1.5bn last year. | The future of Chrysler has been in the balance recently as it battled against huge losses that hit $1.5bn last year. |
| "With this transaction, we have created the right conditions for a new start for Chrysler and Daimler," said DaimlerChrysler chairman and chief executive Dieter Zetsche. | "With this transaction, we have created the right conditions for a new start for Chrysler and Daimler," said DaimlerChrysler chairman and chief executive Dieter Zetsche. |
| The acquisition comes nearly a decade after the $36bn merger of Chrysler and the former DaimlerBenz AG. | The acquisition comes nearly a decade after the $36bn merger of Chrysler and the former DaimlerBenz AG. |
| Along with other US car firms, Chrysler has suffered from falling profits and increased competition from Japanese car firms - slumping to fourth place in the US light vehicle market behind Toyota. | Along with other US car firms, Chrysler has suffered from falling profits and increased competition from Japanese car firms - slumping to fourth place in the US light vehicle market behind Toyota. |
| Like its US peers, the group has also embarked on a significant reorganisation plan, which includes 13,000 job cuts. | Like its US peers, the group has also embarked on a significant reorganisation plan, which includes 13,000 job cuts. |
| Tom LaSorda, president and chief executive of Chrysler Group, said the transaction would create a "standalone Chrysler that is financially stronger". | |
| Worker worries | Worker worries |
| Founded in 1992, Cerberus specialises in snapping up ailing firms and reviving them by means of heavy cost-cutting. | |
| It currently owns about 50 companies with combined revenues of more than $60bn. | |
| Unions - who had been worried over job implications of any sale - welcomed the deal. | Unions - who had been worried over job implications of any sale - welcomed the deal. |
| Ron Gettelfinger, president of the United Autoworkers, said: "The transaction with Cerberus is in the best interests of our UAW members, the Chrysler Group and Daimler." | Ron Gettelfinger, president of the United Autoworkers, said: "The transaction with Cerberus is in the best interests of our UAW members, the Chrysler Group and Daimler." |
| The UAW has a four-year contract with Chrysler that comes to and end in September. | The UAW has a four-year contract with Chrysler that comes to and end in September. |
| The transaction with Cerberus is in the best interests of our UAW members, the Chrysler Group and Daimler Ron Gettelfinger, president, United Autoworkers | The transaction with Cerberus is in the best interests of our UAW members, the Chrysler Group and Daimler Ron Gettelfinger, president, United Autoworkers |
| Analysts have said that making the firm profitable will demand that any new contract with the UAW includes lower costs, notably in health care. | Analysts have said that making the firm profitable will demand that any new contract with the UAW includes lower costs, notably in health care. |
| Experts also said the deal illustrates the continued interest of Cerberus in the auto industry. | Experts also said the deal illustrates the continued interest of Cerberus in the auto industry. |
| In 2006, GM offloaded a majority share in its finance arm, General Motors Acceptance (GMAC), for some $14bn to a group that was headed by Cerberus. | In 2006, GM offloaded a majority share in its finance arm, General Motors Acceptance (GMAC), for some $14bn to a group that was headed by Cerberus. |
| Analysts believe the private equity firm - which has been headed by former US Treasury Secretary John Snow since last October - might be considering merging the GMAC outfit with Chrysler Financial. | Analysts believe the private equity firm - which has been headed by former US Treasury Secretary John Snow since last October - might be considering merging the GMAC outfit with Chrysler Financial. |
| The name Daimler AG will replace DaimlerChrysler, pending shareholders approval. | The name Daimler AG will replace DaimlerChrysler, pending shareholders approval. |