Cerberus’ Delphi Offer Stalled
April 17, 2007

Cerberus Capital Management, a private equity firm leading a $3.4 billion bid to buy bankrupt auto supplier, Delphi Corp., may be stalled because the United Auto Workers union refuses to cut future wages and benefits for new hires. Cerberus’ offer is contingent on favorable negotiations with the union.

Cerberus also is a bidder for Chrysler. Industry observers speculate Cerberus’ inability to get a deal from the union may sour its plan to also buy Chrysler since it surely will want concessions from Chrysler’s unions as well.

Meantime, General Motors, which created Delphi by spinning off its parts-making operations, may be forced to further subsidize Delphi to keep it afloat.

Posted by Michelle Krebs at 4:31 AM under Business , Companies , GM , News | Comments (0) | digg this | Seed Newsvine