Former U.S. Treasury secretary, John Snow, is now the chairman of private equity firm Cerberus Capital Management. He was fairly talkative today. On CNBC, Snow mentioned that Cerberus has no plans to go public. Although, as we've seen in the private equity world, opinions can change quickly.
And, yes, he had some things to say about Cerberus' $7.4 billion purchase of Chrysler. Despite rumors to the contrary, he said the deal is on track. In fact, there are no immediate plans to sell it (but, again, keep in mind that opinions can change – especially if there is a pretty good offer on the table).
Interestingly enough, Snow believes that the auto industry is poised for a comeback. So why sell off the asset?
But, at the same time, Snow is very concerned that Congress's new fuel economy regulations will be detrimental to companies like Chrysler, Ford (NYSE: F), and GM (NYSE: GM).
He even thinks it could result in higher costs and capital requirements for the Chrysler deal. But Snow predicts the regulations will be softened.
Then again, he definitely needs to be upbeat. After all, Cerberus is going on a road show to raise billions for the Chrysler deal and the debt markets are getting a bit jittery right now.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
Reader Comments (Page 1 of 1)
7-26-2007 @ 8:13AM
justpicky02 said...
I never knew one thing about this Investment Company until they supposely brought out Tower Automotive and closed many plants , which effected me , before this , I never heard of this company.
I noticed this investment company is buying out "All or Almost " all the Automotive Companies out ....Tower Automotive , Delhi and CHrysler , and who knows about anything company . If you look on there website , they must buy many many companies out , especially when these companies are fincially in trouble ( like what Donald Trump does buy troubling properties,instead of letting those companies get back in the positive finance ).
Cerebus Investment Company will close plants when they've the company and careless about the employees , these are the people who's out each day , busting there butt to make a living , while CEO's are making there million dollarssss bonuses , which isn't right , while hourly employees make very little money ...... What if the CEO's were hourly and they seen what other CEO's were doing , they weren't like it . A report or many other Congressmen should watch this Investment Company very closely .....Again as soon as they buy a Company out , they start laying off ......I see this all the time .....greedy companies .....