What is Cerberus?
I’ve never heard of it. It is a private-equity firm — named after the three-headed dog that guarded the gates of hell in Greek mythology. The firm, founded in 1992, currently owns about 50 companies, ranging from Air Canada to Formica Corp. Of late, it has taken an interest in the auto industry. It owns the car-rental firms National and Alamo and has a controlling interest in General Motors’ financing arm. Former Treasury Secretary John Snow is Cerberus’ chairman. Is this the biggest takeover by a private-equity firm? No, but it is certainly one of the most high profile. For the first time, a U.S. automaker — and American icon — is in the hands of a private-equity firm, not accountable to shareholders. What happened to the much-heralded merger between Daimler-Benz and Chrysler a decade ago? It never stuck. At the time, it was called a “merger of equals” and a “marriage made in heaven.” As it turns out, it was a less-than-ideal union —- with Chrysler’s profit line after the merger resem
