for 7.4 billion dollars.



Three months to the day after DaimlerChrysler (DCX, news, msgs)announced that "all options" were on the table for its struggling U.S. Chrysler unit, private-equity firm Cerberus Capital Management said it would buy an 80.1% stake in Chrysler for $7.41 billion.

"We're confident that we've found the solution that will create the greatest overall value -- both for Daimler and Chrysler," CEO Dieter Zetsche said in a prepared statement today. "With this transaction, we have created the right conditions for a new start for Chrysler and Daimler."

Cerberus beat out two other bidders: a partnership between rival private-equity players Blackstone Group and Centerbridge Capital Partners, and Canadian auto-parts maker Magna International (MGA, news, msgs).

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Shares of DaimlerChrysler jumped almost 2% to $83.59 in midday trading on the news; the stock has risen 20% since Zetsche announced the company's restructuring plans in February.

The deal is expected to close in the third quarter. Daimler will maintain a 19.9% stake in the new company.