Cerberus Capital Management, a private-equity group based in New York, is considering the purchase of a stake in auto parts supplier Delphi and is looking to recruit at least one automotive executive to help manage its investment, a source familiar with the company’s plans, told Dow Jones.
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Cerberus, which earlier this year struck a deal with General Motors to buy a controlling stake in the auto maker’s lending firm, could now be seeking more automotive assets, according to the source.
Dow Jones said former high-level Ford executive David Thursfield is now a member of the Cerberus management team and has tried to recruit some additional executives with automotive experience to work for the firm.
The news agency said Cerberus’ interest in Delphi follows a move by Appaloosa Management, a $US4.5bn hedge fund, to buy up equity in the Troy, Michigan-based auto maker. Appaloosa owns 9.3% of Delphi stock and is the most visible in a collection of major Delphi shareholders that includes Harbinger Capital Partners, a separate source familiar with Delphi’s list of investors told Dow Jones.
“Someone is going to buy Delphi, it’s just a matter of time,” the source reportedly said. The source downplayed the potential of Cerberus buying the entire company, but he did not rule out a group of investors attempting a takeover.
Dow Jones said Cerberus’ potential move to acquire a sizable stake in Delphi would expand its reach in the US auto industry at a time when the cost of entry is relatively inexpensive due to the recent troubles of the Big Three auto makers and the US supply chain.
