Buyers to Line Up for Chrysler Financial

NEW YORK (TheStreet) -- The reported sale of Chrysler Financial will most likely attract other lenders as potential suitors rather than a private equity firm, according to industry watchers.

Cerberus Capital Management is supposedly seeking buyers for its stake in the auto lender, which the private-equity firm acquired as part of its takeover of Chrysler LLC in 2007, according to Bloomberg. The auto lender has a book value of about $6 billion or $7 billion.

"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," said Carla Zilka founder & principal advisor, NexGen Advisors. "I don't believe a PE firm would be interested unless it was discounted heavily."

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