Chrysler Sale: Full Employment Act for Bankers

Posted by Bess Levin, May 16, 2007, 3:40pm

Chrysler-PT-Cruiser.jpgFees tend to make everyone happy, especially the leaches at the receiving end of them. It’s even more fun when you can collect them by helping one company who made 36 billion mistakes nine years ago pay another company to take the unwanted child that never should’ve been carried to term off its hands. Deal Journal reports that there are 600 people involved in the DaimlerChrsyler proceedings.

The Cerberus team was led by the firm’s founder, Stephen Feinberg, and Lenard Tessler, who runs its leveraged buyout arm, another person said. At Daimler, the point people on the deal besides, of course, Dr. Z — the automaker’s chief, Dieter Zetsche — were Chrysler head Tom Lasorda, and Paul Knauss, who oversees auto lender Chrysler Financial.

The bankers that have surfaced so far as having some role on the deal include J.P. Morgan, which advised Daimler, as well as Citigroup, Goldman Sachs Group, Morgan Stanley and Bear Stearns, which helped finance it. The law firms working on the deal include Shearman & Sterling, Skadden, Arps, Slate, Meagher & Flom and Schulte Roth & Zabel, which has risen to riches counseling Cerberus, according to this post from our colleagues over at the Wall Street Journal’s Law Blog yesterday. (Considering how competitive the M&A world is, it wouldn’t surprise us if more advisers surface.)


The Chrysler Deal Making Army [Deal Journal]

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Posted in: Cerberus Capital, Daimler-Chrysler

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Posted by Carter Powers, May 16, 2007 5:29PM

Here is an excerpt from the www.NewsVisual.com blog post titled: "Map of Related Parties in Cerberus - Chrysler Deal"

Following IntellectSpace Knowledge Maps provide a visual perspective on inter-relationships between Cerberus and Chrysler, in the midst of Cerberus's buyout of Chrisler unit of DiamlerChrysler.

The following Knowledge Map shows how John W Snow, non-executive Chairman of Cerberus, shares membership seats with Peter Magowan and Robert E Allen (directors of DiamlerChrysler) through the Business Roundtable, the Business Council, and the U.S. Japan Business Council.

An interactive version of this Knowledge Map is available by navigating to the following URL using your Internet Explorer: http://fn.intellectspace.com/ispace/GuestMonitor.aspx?id=e7ba7698-1bf4-49aa-8c4a-3a335fcde0c8

Posted by anon, May 17, 2007 10:38AM

"Leeches" has three "e"s, Bess. Tch, tch.

Posted by jm, May 17, 2007 10:51AM

actually anon, it's spelled (as it's printed above), 'leaches'

Posted by Chris G., May 17, 2007 11:28AM

JM -

"Actually", "Leeches" is the correct word. I believe Ms. Levin is referring to the blood-sucking invertebrates to which bankers are usually compared.

"Leaching", on the other hand - while similar in meaning - refers to a mostly chemical (sometimes agricultural) process.

As per Wikipedia: "In a typical leaching operation, the solid mixture to be separated consists of particles, inert insoluble carrier A and solute B. The solvent, C, is added to the mixture to selectively dissolve B. The overflow from the stage is free of solids and consists of only solvent C and dissolved B. The underflow consists of slurry of liquid of similar composition in the liquid overflow and solid carrier A. In an ideal leaching equilibrium stage, all the solute is dissolved by the solvent; none of the carrier is dissolved. The mass ratio of the solid to liquid in the underflow is dependent on the type of equipment used and properties of the two phases."

So, in this case, it boils down to "context"...not who's the super speller of the day.

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