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  • William Maley
    William Maley

    By William Maley •

    Fiat Seeking $10 Billion In Financing To Buy Chrysler

    By William Maley

    Staff Writer - CheersandGears.com

    May 30, 2013

    According to Bloomberg, Fiat is reportedly seeking $10 Billion in financing to buy out the remaining 41.5% of Chrysler that is being held by the retiree trust of the United Auto Workers and refinance the two automakers' debt.

    Fiat has been in talks with a number of banks such as Bank of America Corp., Deutsche Bank AG, and Goldman Sachs Group Inc., to secure financing. Earlier reports said Fiat was seeking around $4 Billion, but that figure has risen considerably. This is most likely due to a court case in Deleware between Fiat and the UAW arguing the total price for the remaining shares.

    “The merger is the right choice for Marchionne and the only possible option to avoid Fiat being marginalized or bought by a competitor in the medium term. I see it as likely that they will get favorable financing by the end of the summer and then list in the U.S,” said Emanuele Vizzini, chief investment officer of Investitori Sgr in Milan.

    The cquisition of remaining shares could happen by this summer, but the merging of the two companies isn't likely to happen until till next year.

    Source: Bloomberg

    William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster.

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    G. David Felt

    Interesting to see how this plays out. UAW wants to get as much as possible. Fiat wants to pay as little as possible and then list the new company here in the US. I find that interesting. Wonder what they are wanting to avoid by not being listed in Europe? Course they could still get gobbled up by some other large and in charge company but not sure who that would be at this point in time.

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    G. David Felt

    I agree with you drew that companies should refinance all the debt they can to get the lowest rate possible.

    I just wonder how this will play out as the European Union deals with it's large amount of debt.

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    riviera74

    I agree with you drew that companies should refinance all the debt they can to get the lowest rate possible.

    I just wonder how this will play out as the European Union deals with it's large amount of debt.

    Maybe the member countries of the EU should default and eat the loss for a decade. The EU needs growth more than anything else. If FIAT is using this to ditch Europe, bully for them. I just hope that FIAT does not strangle Chrysler like Cerberus almost did or steal all the cash like Daimler did.

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