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Mumbai:
DaimlerChrysler has completed the sale of its 80
per cent stake in its US arm, Chrysler, to a subsidiary
of buyout group Cerberus Capital Management, the company.
The
transaction has been delayed as bankers postponed a
$12 billion loan syndication to finance the transaction
in a tight market. DaimlerChrysler and Cerberus have
thus been forced to help with the financing.
"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," the carmaker
said.
Cerberus would
subscribe $2 billion of tier-2 debt for Chrysler''s automotive
business, to be drawn within 12 months and priced at
market conditions. DaimlerChrysler''s portion would be
$1.5 billion, and it would have the right to sell the
loan, which has a maturity of seven years, in the credit
market, it added.
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