Cerberus Capital Management is expected to withdraw its plans to invest in Delphi Corp., just as the world’s largest auto supplier prepares to emerge from bankruptcy protection, Delphi said in a statement Thursday.
Cerberus was one of five firms planning to invest a total of $3.4 billion for a majority stake in a reorganized Delphi. The private equity firm, which is buying Tower Automotive and has shown interest in the Chrysler Group, hasn’t officially backed out of the deal, Delphi said.
The four other investors, Appaloosa Management LLP, UBS Securities LLC, Merrill Lynch & Co. and Harbinger Capital Partners Masters Fund I Ltd., are still expected to invest in Delphi, the Troy-based company said.
Cerberus may still provide financing for Delphi, but not act as one of the main investors, Delphi said.
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