Cerberus Capital Management, the owner of the institution and former Chrysler owner, is currently seeking buyers for the unit which has an estimated book value of in between $6 billion to $7 billion. Their chances of picking the buyer from a large pool of interested buyers, however, are not that great, given the fact that there are only a few banks who can afford it.
"This is an opportunity for a strategic partner. A bank or current auto financing unit would benefit the most from an acquisition due to their ability to realize synergies," Carla Zilka founderof NexGen Advisors told thestreet.com. "I don't believe a PE firm would be interested unless it was discounted heavily."
According to Freep, citing inside sources, the most likely bets when it comes to selling Chrysler Financial are Bancorp, PNC Financial Services Group and Wells Fargo.
"Here's a juicy asset that has incredible yield to it and if you know how to run the auto business like Wells, it may make a lot of sense to consider this one," Gerard Cassidy, RBC Capital Markets analyst was quoted as saying by Freep.
In the wake of last year's automotive sector crisis, word was Chrysler Financial will close by the end of next year. At least, this was the position adopted by the US Treasury Department
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