The Squabble Between Daimler and Cerberus

An interesting battle is brewing on the sideline as the drama of whether the Detroit Three obtains the bridge loan it is requesting unfolds. As Daimler negotiates selling its remaining 19.9% stake in Chrysler to Cerberus, the two companies started sparring last week over the true value of Chrysler.

Apparently, Cerberus believes Daimler misrepresented Chrysler's true condition when it sold the company last year to the private-equity firm and is asking for compensation. According to a release from Daimler last week, Cerberus is asking for compensation that exceeds the $7.4 billion Cerberus paid for Chrysler last year.

Daimler didn't help its case when it valued its remaining Chrysler stake last month to be zero.

While the squabble makes for a juicy story for us journalist types, the news is not good because it conceivably throws another monkey wrench into Chrysler's financial aid hopes.