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Chrysler Auction: Bids Due Thursday!

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It’s down to crunch time on the auction for Chrysler and major private equity firms have lined up their bankers to support their buyout proposals, according to a report this morning from the Detroit News. Blackstone and Centerbridge—who are working together—have Bank of America, Lazard and Lehman Brothers in their corner. Meanwhile, Cerberus Capital Management LLC, is said to have recruited Goldman Sachs Group.
The General Motors bid, reportedly made way back in January, appears to have set off the star Chrysler sell off but to have been too skimpy to be seriously considered. All GM offered was 10 percent of its equity, no cash, and a requirement that DaimlerChyrsler pay GM $1 billion.
Six weeks ago we pointed out that GM seemed unlikely to pick-up Chrysler for this very reason

Another problem: GM boss Rick Wagoner is a tightwad. Remember the outsized dowry he and the GM board demanded from Ghosn when they considered the combination with Nissan-Renault? How much would GM pay up for Chrysler? When we called one of our banker friends to ask for a valuation on what GM might pay for Chrysler, he joked that GM might ask Daimler to pay them to take it off their hands.

Big banks latch on to Chrysler talks
[Detroit News]