Fiat has option to increase Chrysler stake to more than 70%
As the U.S. governments look to exit their investments in the auto industry, Italian automaker Fiat SpA has options to increase its stake in Chrysler Group LLC to more than 70 percent. Following the repayment of debts to the U.S. and Canadian governments, Fiat has the options for 12 months to buy the U.S. Treasury’s remaining stake, Chrysler said today in a filing with the U.S. Securities and Exchange Commission.
Chrysler has confirmed that it will issue new debt to repay the government loans, which will allow Fiat to increase its stake from 30 percent to 46 percent.
The U.S. Treasury currently holds a 8.6 percent stake in Chrysler. Fiat also has the option to take 40 percent of the original stake held by the UAW’s retiree health-care trust, the Auburn Hills automaker said.
– By: Omar Rana