Sunday, May 20, 2007
The big news this week is Cerberus's winning bid to take Chrysler off the hands of Daimler Chrysler by purchasing a 80.1% interest. Daimler Chrysler is so relieved to undo the 9-year merger that it is investing an additional $677 million in the company. Other U.S. auto makers are hopeful that Chrysler can make a deal with the unions about pension and health care benefits that will be helpful to them all. Other note-worthy events include two decisions to take no action. The SEC, to the outrage of the brokerage industry, decided not to seek rehearing of the D.C. Circuit's decision in FPA v. SEC (invalidating the exemption from the Investment Advisers Act for brokerage fee-based accounts). The Dow Jones board of directors decided not to take any action on Murdoch's bid so long as a majority of the voting control remains opposed to the bid.