Daimler: Talks Stalled On Chrysler Stake
DETROIT (AP) -- Daimler AG says talks to sell its remaining stake in struggling Detroit automaker Chrysler Holding LLC have stalled because of exaggerated demands from Chrysler owner Cerberus Capital Management LP.
Daimler says Cerberus is making demands that exceed the value of the private equity firm's investment. It also says Cerberus is claiming Daimler provided incomplete information about Chrysler.
Daimler sold 80.1 percent of Chrysler to Cerberus last year in a $7.4 billion deal. Cerberus is trying to buy the remaining 19.9 percent stake.
A message left for a Cerberus spokesman wasn't immediately returned.
Chrysler, along with other U.S. automakers, is seeking federal loans to stave off running out of cash. Cash-starved GM reportedly had been in talks last month to buy Chrysler.