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Fiat talking with banks about buying rest of Chrysler

Posted Feb 13th 2013 5:45PM

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Fiat and Chrysler logosAll that stands in the way of Fiat's total ownership of Chrysler is a 41.5-per cent 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 US$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 per cent share of Chrysler in June 2009, and it raised its stake up to 58.5 percent in January 2012.

Fiat 500e and Fiat 500L at the Los Angeles Auto Show 2012

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