03 August 2007
Chrysler and its captains
It was a merry merry month, but wasn't a done deal -- there were a lot of particulars to arrange before it could close, especially the details of the financing. And the devil turned out to be in the details.
Bankers announced last month the postponement of a multi-billion dollar syndicated loan integral to the closing. Daimler and Cerberus both said they were confident everything would go through in this, the third, fiscal quarter as planned. But some -- and I count myself among them -- suspected an element of whistling passed the graveyard there. I thought the deal might be in trouble, though I'm happy to say that I didn't go so far out on a limb as to say so, here or elsewhere.
The political climate also turned against private-equity in some quarters, and that stoked fears that either the buyer or the seller might want to cut and run from this highly visible example of the privatization of a formerly public enterprise.
Still ... captain, my captain ... you've brought the ship to port. It could close as early as today.
There might be hope for the North American auto industry yet.
Knowledge is warranted belief -- it is the body of belief that we build up because, while living in this world, we've developed good reasons for believing it. What we know, then, is what works -- and it is, necessarily, what has worked for us, each of us individually, as a first approximation. For my other blog, on the struggles for control in the corporate suites, see www.proxypartisans.blogspot.com.