Fiat to increase Chrysler stake to 51% ahead of IPO?

Filed under: Chrysler, Earnings/Financials, Fiat

According to Automotive News, Fiat may be looking to increase its stake in Chrysler from 20 percent to 51 percent before the Pentastar goes public. If true, that would mean that Fiat intends to repay Chrysler's federal loans before their 2013 due date. Doing so would allow the Italian automaker to sink its teeth into its American property by an additional 16 percent.

Sergio Marchionne, who serves as the CEO of both Fiat and Chrysler, said that while he doesn't know for certain whether he would move to have Fiat take over a larger portion of Chrysler, it is a possibility. The executive said that such a move would provide plenty of benefits for both automakers.

Fiat itself has been undergoing fairly substantial changes outside of its tie-up with Chrysler. The company just split into two different operations, with its automotive efforts flying under one banner and its industrial work sailing under another.

[Source: Automotive News - sub. req.]

Fiat to increase Chrysler stake to 51% ahead of IPO? originally appeared on Autoblog on Mon, 03 Jan 2011 16:29:00 EST. Please see our terms for use of feeds.

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Source: http://www.autoblog.com/2011/01/03/fiat-to-increase-chrysler-stake-to-51-ahead-of-ipo/

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