Chrysler sold for $7.4B

I am sure all of you must have heard the news by now. DaimlerChrysler has sold 80.1% stake of the struggling Chrysler unit to private-equity firm Cerberus Capital Management for $7.41 billion. Read the press release here.

According to Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG and Head of the Mercedes Car Group:

We’re confident that we’ve found the solution that will create the greatest overall value – both for Daimler and Chrysler . With this transaction, we have created the right conditions for a new start for Chrysler and Daimler.

Shares of DaimlerChrysler jumped on the news, indicating that investors were confident that Cerberus could turn around the ailing unit. Read the Forbes report here.

Cerberus beat two other bidders, a partnership between Blackstone Group and Centerbridge Capital Partners, and Magna International (a Canadian auto parts company).