Delphi's Bail-Out Hits Snag Over Wage Talks: Report

Law360, New York (April 17, 2007, 12:00 AM EDT) -- A bid by a private equity firm to buy Delphi Corp. for $3.4 billion has reportedly hit a stumbling block after a union refused to submit to demands to reduce wages and benefits to new and future employees.

Talks between the United Auto Workers and the investor group, led by hedge fund Cerberus Capital Management, stalled when the group expressed concerns over an escalating wage clause in preliminary agreements reached between Delphi and the union, the Wall Street Journal reported Tuesday.

Citing several people familiar with...
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