Cerberus denies selling half of Chrysler and GMAC stake

Cerberus Capital Management has denied selling any portion of its investment in Chrysler.

A report earlier today by Financial Times, which was widely propagated by other sites, claimed that Cerberus Capial Management had sold over half its stake in the two firms to a consortium of 90 private investors.

A Chrysler official speaking anonymously with Automotive News has confirmed that the 90 investors thought to have purchased part of Cerberus' stake were actually co-investors that have been part of the deal since the beginning.

Together, Cerberus and the co-investors purchased 80.1% of Chrysler from Daimler last year, and the company "hasn't sold a nickel" of that investment according to a Cerberus spokesman.

The news of the sale was thought to be the result of troubles at GMAC due to the current mortgage woes facing the U.S. economy and Chrysler's difficulty in adjusting to the smaller, more efficient car market precipitated by skyrocketing fuel prices and tightening CAFE standards.

Though those factors remain in play, so does Cerberus' investment in the two companies.