Cerberus is currently in negotiations to acquire the remainder of the Chrysler equity from Mercedes Benz. The top Executives of MB always loved the Viper. I am going to take a wild guess and say that, as part of the deal to acquire the rest of Chrysler stock from MB, MB will end up with the Viper line. How would this be done? First, the Viper line would be dropped into a wholely owned subsidiary of Chrysler. ( I am assuming that Chrysler LLC is either a sub S corp or a C corp for federal tax purposes. If it is a sub S, a Q sub election would be made if necessary) The stock of the subsidiary would then be used as part of the consideration, in a partial nontaxable reorg, to buy the equity interest in Chrysler still owned by MB. I know this sounds a bit farfetched but it is possible. If MB acquires the Viper, they will make it into a monster beyond anything we have dreamed of. Why? Because it would be a stand alone vehicle that they could then use to reenter racing and destroy the competition. I bet that when the Viper set the Ring record, the MB gearheads and management started foaming at the mouth to get their hands on the Viper. Herb. If you read this. What do you think?
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