Cerberus says won’t invest in Blackwater USA
May 1st, 2008 | by admin |NEW YORK, May 1 (Reuters) - Cerberus Capital ManagementLLC, the buyout fund managed by investor Stephen Feinberg, onThursday said it decided not to invest in Blackwater USA, theprivate security firm that guards U.S. State Departmentpersonnel.
Cerberus, which controls automaker Chrysler LLC and dozensof other companies that generate more than $100 billion inannual sales, had considered investing some $200 million intoBlackwater, according to a source close to the situation.
“We have made a decision not to pursue a transaction withBlackwater,” said Peter Duda, a Cerberus representative. Hedeclined to disclose further details about the transaction thatit had considered, including its possible size.
Blackwater could not be reached for comment.
Blackwater, which guards U.S. government personnel in Iraqand elsewhere, faced heavy criticism and an FBI investigationover the killing of 17 Iraqi civilians in a crowded Baghdadsquare last September. (Reporting by Dane Hamilton, editing by Gerald E. McCormick)
