Fiat Buys More Chrysler Stock
Having exercised three of its six options, Fiat now owns 68.49 percent of Chrysler. The recent 3.3 percent of shares have been acquired from the VEBA, a medical-benefits trust for Chrysler’s retirees, Automotive News reports. However, Fiat has yet to reach an agreement with the VEBA on the acquisition of its remaining stake in Chrysler.
Fiat can increase its Chrysler stake to 75 percent in a three-year process that ends in July 2014. The Italian car manufacturer is looking to loan as much as $10 billion to gain full control of Chrysler and to refinance the company’s debt.
Fiat’s link with Chrysler began in 2009, when Sergio Marchionne’s company obtained 20 percent of the American automaker for free.
Story via AutomotiveNews