Cerberus May Bow Out Of $3.4B Delphi Bid

Law360, New York (April 19, 2007, 12:00 AM EDT) -- The hedge fund that's leading the private equity charge to buy Delphi Corp. for $3.4 billion may pull out due to disagreements over the company’s future profitability and stalled talks with its unions.

In a statement Thursday, Delphi said that under an amended agreement, Cerberus Capital Management LP, the fund that had committed $1.7 billion to the purchase agreement, might still participate in Delphi’s exit financing, but not as a plan investor.

The auto parts supplier said it anticipated negotiating changes to the deal it reached...
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