Cerberus puzzles

I’m trying to make sense of the Cerberus takeover of Chrysler. The private equity firm is getting Daimler only $1.3 billion not much of a return for the original $36 billion that Daimler paid for Chrysler. The rest of Cerberus’ $7.4 billion goes to a $5 billion investment in Chrysler and $1.05 billion for the financial arm.

I do not understand this $1.05 billion since its lending arm is already quite profitable.

Finally, pension funds are investing in Cerberus, as a company that will no doubt damage the existing pensions of Chrysler workers.

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