Comments on: Bloomberg Backpedals for WSJ on Cerberus’ Demand for GM CEO Rick Wagoner’s Scalp

By: Pch101

Pch101 — Sat, 25 Oct 2008 23:08:09 +0000

The desire for a minority stake suggests a sale of Chrysler, more so than a merger. It provides for the chance for a possible (but probably unexpected) earn out, but without too much commitment on Cerberus’ part.

I suspect that Cerberus’ main motivation is to find a way to effectively exit while taking out as much cash with them as possible, understanding that they can’t justify taking all of it out of the deal. They have grown tired of their brief foray into the auto manufacturing business, and would welcome a graceful exit if they can get it. They’ll take a not-so-graceful one if that’s all that they can get.

By: guyincognito

guyincognito — Sat, 25 Oct 2008 21:38:04 +0000

Why would Cerberus want more exposure to the US auto industry? After they’ve completely blown it on Chrysler they want to invest money into GM and put their “dream team” in charge? The only rationale is that they want to get their (filthy) hands on the bailout money, but if there are bailout bucks flowing Cerberus is going to have to be out of the picture. I stand by my theory that everything reported about this merger is total BS. It is not gonna happen.

By: Mike the loser

Mike the loser — Sat, 25 Oct 2008 21:20:50 +0000

FIRE WAGONER.

He is a deadbeat.

By: 50merc

50merc — Sat, 25 Oct 2008 21:08:30 +0000

Love the photo. (The movies, too.)

We need old-fashioned law enforcement like that, not sneaky cameras.

By: Ken Elias

Ken Elias — Sat, 25 Oct 2008 21:05:12 +0000

I think the backpedaling on Cerberus’ involvement is tied to the political ramifications of bailing out private equity by the Feds. Cerberus cannot appear to be in control of GM, but I highly doubt that Cerberus would make a meaningful equity investment in GM without some Board representation. Also, now that I think about it, Nardelli isn’t a political poster boy for labor given what happened at Home Depot so that might rule him out as Chairman of the new GM. RF’s Deep Throat might have gotten that call wrong.

Let’s keep in mind that a Government bail out of GM is critical, and therefore any investments by private equity and management changes have to be viewed in that light.

By: autonut

autonut — Sat, 25 Oct 2008 20:02:09 +0000

I guess journalistic integrity and professionalism rivals banker’s