Sources say Cerberus has been picked up as Chrysler Bidder

Sources say Cerberus has been picked up as Chrysler Bidder

market sources are claiming that DaimlerChrysler has picked up private-equity firm Cerberus Capital Management LP as the finalist in their attempt to sell off their US division Chrysler.

An official announcement can come as early as today.

Two other bidders in the fray were Canadian auto-parts supplier Magna International Inc. and a partnership with New York buyout firms Blackstone Group LP and Centerbridge Capital Partners LP.

Market analyst Dan Luria spoke about this latest report in the market: “From DaimlerChrysler’s standpoint, it’s purely about who could put the most cash in their pockets the fastest.”

involved parties have declined to comment on this new rumor in the market.

These private equity firms have been interested in acquiring the US based automaker as they believe that they can turn around the operations by reducing wages and paring other costs such as pension expenses.

The United Auto Workers union and CAW have however already raised an objection to DaimlerChrysler’s decision to sell off the Chrysler division.

Canadian Auto Workers President Buzz Hargrove has been quoted as saying in the media: “Whoever buys Chrysler is going to have to respect our collective bargaining agreement.”