Cerberus Capital Management could have invested $200 million for a stake in Blackwater, said a source close to the negotiations. Other sources said auditors from Cerberus had been examining Blackwater's books since the beginning of the year. Cerberus, which owns a controlling stake in Chrysler had been in negotiations to buy the controversial security firm Blackwater USA, which has millions of dollars in U.S. government contracts in Iraq, according to sources familiar with the talks. Other sources said auditors from Cerberus had been examining Blackwater's books since the beginning of the year.
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