Cerberus a Step Away from Purchasing Chrysler

US private equity group is a step away from a great acquisition.

US private equity group Cerberus is a step away from a great acquisition of Chrysler, the US branch or German DaimlerChrysler which was struck with problems, reports the Financial Times on Monday.

Quoting people close to the negotiations, this business weekly states that the acquisition announcement might be expected on Monday or Tuesday, when Daimler`s board of directors is supposed to meet. According to Financial Times, it is uncertain how much will this cost the US private equity company.

Sources say that the situation is developing smoothly, but that the Canadian auto-parts manufacturer Magna International can still jump in and purchase Chrysler.

-Nothing is 100% certain until it is signed- said a source for FT. –But it is probable that the contract will be signed within the next 48 hours, favouring Cerberus- the source added.

However, writings of the weekly contrast last week`s statements of Frank Stronach, Magna managing president, who said that he hoped to announce the contract on the purchase of Chrysler in the next several weeks. DaimlerChrysler is one of the largest clients of this Canadian company, generating almost a quarter of its annual income, while Chrysler participates in Magma`s income with 15 percent.

According to the Financial Times weekly, all parties refused to give statements linked with the possible acquisition.