Filed under:
Government/Legal,
Chrysler,
Earnings/Financials,
Fiat
All that stands in the way of Fiat's total ownership of
Chrysler is a 41.5-percent stake currently held by the
United Auto Workers healthcare trust, but according to
SFGate.com,
Sergio Marchionne is currently trying to raise the capital to complete the acquisition. The article says that a deal could be completed in as soon as 12 months, and the estimate for the remaining stake could cost
Fiat SpA around $2.98 billion.
With a goal of completing the deal by the end of 2014, Marchionne is said to be in talks with various banks to help finance some of the deal. According to the report, the banks have indicated a need for a stronger balance sheet, controlled debt and reserve cash.
Two things that don't seem to be on the table to get the deal completed include issuing new shares to raise the capital or selling a stake in
Ferrari. Fiat started with a
20 percent share of Chrysler in June 2009, and it
raised its stake up to 58.5 percent in January 2012.
Fiat talking with banks about buying rest of Chrysler originally appeared on
Autoblog on Wed, 13 Feb 2013 11:29:00 EST. Please see our
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Report: Fiat talking with banks about buying rest of Chrysler
