Cerberus Capital Management has denied a newspaper report it had sold more than half the equity it holds in Chrysler and finance company GMAC.
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A spokesman last night told the Associated Press (AP) that it had not sold any of its stakes in either firm.
The Financial Times, quoting unidentified people familiar with the situation, had said Cerberus tried to reduce its risk by selling stakes to investors including major banks and hedge funds.
AP noted Cerberus led investment groups that bought a 51% stake of GMAC from General Motors for US$7.4bn in 2006 and an 80.1% stake in Chrysler from the company now known as Daimler last year.
Cerberus spokesman Peter Duda told the Associated Press both deals included co-investors all along, and the private equity firm had not reduced its equity positions since the transactions were completed.
“Cerberus has not reduced or made any changes to its equity stakes in GMAC or Chrysler since the closing of either transaction,” he told AP. “Cerberus continues to have voting control over both investments. Our commitment to these companies has not changed.”
