Cerberus Capital Management is seeking buyers for auto lender Chrysler Financial, which the private equity firm acquired as part of its takeover of Chrysler in 2007, people with knowledge of the matter have said.

According to Bloomberg News, Cerberus in recent days began soliciting interest in the Farmington Hills, Michigan-based business from large banks. The former lending arm of Chrysler has a book value, or assets minus liabilities, of about US$6bn or $7bn, the sources said.

Cerberus at one time controlled GMAC, now Ally Financial, the one-time finance arm of General Motors.

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