First off, I work for Chrysler. We are having so many concerns at work and a good question came up that I'm not sure of the answer. Maybe you guys can help.
Chrysler is a private company. Cerebus owns 80.1% and Diamler owns 19.9%. Diamler is publically traded. Chrysler isn't.
Does Diamler take any hits because of Chrysler having problems of merger/bankrupcy/etc.
Why wouldn't Chrysler go public and sell stock to shareholders to raise money?
Thanks for any imput.
Posted by glassman on :
they wouldn't get much money for shares in a co. that might/could go BKRPT, and the shorts will play on the BKRPc fears...
Posted by R1 Man on :
That is part of my thought. If they go public, they could end up losing the company due to shareholders equity demands of liquidation. But I have to agree with you 100%.
Does Diamler have any say in what Cerebus does since they own 19.9%?
I see no gain in merging with GM for either company. So why merge?
Posted by glassman on :
usually the minority shareholders do not have a say.
cerebrus may not be able to vote all of it's shares one way... i dunno how the deal was sturctured.
however? it is possible to have preferred shares that have more than 1 vote each, even tho they are worthless or just worth less...
Posted by Peaser on :
One answer...
...They're smart.
If they survive the next 3-8 years. it might be a possibility.
Posted by ohio_trader on :
quote:Originally posted by R1 Man: That is part of my thought. If they go public, they could end up losing the company due to shareholders equity demands of liquidation. But I have to agree with you 100%.
Does Diamler have any say in what Cerebus does since they own 19.9%?
I see no gain in merging with GM for either company. So why merge?
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either merge or good chance you both go bye, bye
all 3 u.s. auto manufactures will be not be left standing much longer- either come together or you will be done, toyota is just waiting to buy one of you and shut you down( to eliminate competition) when the price gets low enough, and its getting close
and ford is barely breathing, so u think your all 3 gonna make it, doubtful
Posted by Peaser on :
Honda might sneak in there as well.
Posted by CashCowMoo on :
Given the status of how things are I would not put any Chrysler stock into my portfolio.
Looks like McDonalds has a good quarter. They say that dollar menu is becoming quite popular these days as compared to dining out.
Posted by R1 Man on :
You know, I told the guy at work that the company would become worthless if they went public but he says that still doesn't explain why they won't go publically traded to raise capital. Can't really tell him anymore. He is just IGNORANT!!!
So, big 3 jobs come this way. Family members used to bring their kids and family members in to work. They normally would start working at early ages and usually never had any education past high school. Now when they hire, they pick up people from the unemployment office. What happens there is we get people who has never made good money and they still have the street life in them. They complain about others getting more money and never educate themselves. So guessing this 43 year old IGNORANT guy fits that category.
So, fears of Chapter 13. Chrysler just offered $100k buyouts for those who have less then 30 years and $70k for those with 30 or more. Their last day is October 31st. Now what happens if they file Chapter 13 within the next 2 months. Those taking the buyout will get paid in 45-60 days from the last day they work. I think that is scary.
Well, thanks for all the imput. I can say that they have the UAW scared and in bitter moods. Some ready to just quit and walk away without any money.
Posted by CashCowMoo on :
Like I said a few days ago, I doubt adding Chrysler to your portfolio would be a smart move!
DETROIT – Chrysler LLC says it will cut 25 percent of its salaried work force starting next month.
The company says the cuts are in addition to those previously announced and will be done through involuntary layoffs and voluntary retirements and buyouts.
Chrysler has about 18,500 white-collar workers.
The company said in a statement Friday that employees also were told to cut discretionary and overhead expenses and reduce capital expenditures not related to major products.
Chrysler's owner, Cerberus Capital Management LP, is in talks to sell the company or merge with another. Discussions are under way with General Motors Corp. and the combined Nissan Motor Co. and Renault SA.
Posted by raybond on :
I feel that if chrysler went public it would be trading in the pennies in 30 days.