Chrysler For Sale. Sold.

Posted by Eli Lehrer

The biggest piece of business news this morning is the sale of 80 percent of Chrysler to a private equity firm, Cerberus Capital. As John Berlau, I’m sure, will comment, the fact that a private equity firm is doing this may result in part from Sarbanes-Oxley. Particularly for a vastly complicated company like Chrysler, it must be very attractive to escape from the “Sarbox trap.” I don’t think that can explain the entire rise of private equity or this merger but, if nothing else, Sarbox has given private equity firms more capital to take over major companies.

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05/14/2007 @ 10:46 am | Odds & Ends | Comments

 
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