Fiat to pay $1.5 billion stake of Chrysler: Sources

By Reuters
Posted Friday at 2:10 p.m.

Italy’s Fiat SpA is looking to pay around $1.5 billion for an additional 16 percent in Chrysler, which it hopes to purchase in the coming months, three sources familiar with the matter said.

Italy’s biggest industrial group is also working to raise 1.5 billion euros ($2.17 billion) through a credit facility, according to one source with direct knowledge of the matter.

Fiat already owns 30 percent of Chrysler and could raise its stake to 46 percent through the purchase of shares issued by the U.S. automaker as soon as Chrysler manages to repay the $7 billion it owes to U.S. and Canadian governments.

“It will be around $1.5 billion,” said one of the three sources.

A second of the sources told Reuters $1.5 billion was the “right ballpark.” The third source confirmed that figure.

Sergio Marchionne, the Italian-Canadian who runs both Fiat and Chrysler, said earlier this week Chrysler would refinance the government debt by June, paving the way for a further hiking of Fiat’s stake in Chrysler, also by June.

Fiat declined to comment on the cost of the additional 16 percent in Chrysler and on the planned credit facility.

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