DaimlerChrysler (DCX) Shares Motor Off A Cliff As Buy-Out Concern Grows
DaimlerChrysler (DCX) shares are down another 2% in European trading to 64.4 euros. Just over a week ago they were closer to 70.
It appears that banks involved in the deal for hedge fund Cerberus to buy 80% of Chrysler will have to eat half or more of a $10 billion piece of one of the loans. As The Wall Street Journal points out: “The debt to be held by the banks would bear the first losses if Chrysler has problems repaying.”
Trading in Daimler shares may be an indication that the market is still worried that the deal may not get done.
Douglas A. McIntyre