BusinessWeek has a story this week about Cerberus chief Stephen Feinberg's successful buyout of GMAC:
Wall Street has been buzzing over how the 46-year-old Feinberg snapped up a huge financial-services company for little more than its book value from Kravis, age 62. Kravis may someday look wise for having turned his back on a deal heavily laden with risk. But losing to Cerberus has to sting.
In other words, IN YOUR FACE, KRAVIS!
But not really. The BW piece is extremely flattering to Cerberus**, but the deal terms are fairly restrictive. There are risks associated with the leases and loans, an obligation to invest after tax profits for 5 years, and probably in the fine print somewhere, something about Feinberg's firstborn.
Related but not: While everyone was paying attention to GMAC, Cerberus bought Bushmaster, LLC, which manufactures assault rifles. We've always thought that in addition to Osama Bin Laden shooting targets, there should be Harry Whittington shooting targets. But how about a Henry Kravis shooting target? Just for Cerebus employees!
Cerberus to KKR: Eat Our Dust!
**"sources close to Cerberus" = Stephen Feinberg?