Fiat Upping Stake in Chrysler Once More
Will control 46 percent of Chrysler this month, with additional 5 percent by end of year.
After raising its stake in Chrysler from 20 to 30 percent last month, Fiat is set to spend another $1.27 billion for an additional 16 percent equity in the Detroit automaker this month, to be followed by and additional five percent -- for a majority stake of 51 percent total -- by year's end.Fiat and Chrysler will share management, engineering, and global distribution.
Fiat CEO Sergio Marchionne today confirmed the $1.27 billion purchase price, and that Chrysler's financials will be consolidated into Fiat's even before majority control of the company is achieved, as Fiat already has "effective control" of Chrysler.
Chrysler is preparing for a road show, to kick off in the next few weeks, to sell company debt to investors on its way to repaying government loans -- the first steps toward selling Chrysler stock.
[Source: Detroit News.]
Fiat is set to spend another $1.27 billion for an additional 16 percent equity in the Detroit automaker this month, to be followed by and additional five percent -- for a majority stake of 51 percent total
Why not go for a 100% stake in Chrysler? That way they can do what they want with out having to consult other investors. America has lost all it's advantages by whoring itself around and being huge pusses so why not sell another part of our soul to outside source? The only thing we have over everybody is our military and a simple emp would be enough to leave it hanging high and dry these days.EXPLORE NEW CARS
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