Fiat Hunting $10 Billion Loan to Buy Chrysler
According to The Detroit News, Fiat is negotiating with banks such as Bank of America, Deutsche Bank, Goldman Sachs and BNP Paribas for a loan which will allow it to purchase the 41.5 percent of Chrysler held by the United Auto Workers’ retiree health-care trust.
The same report claims that Fiat may pay as much as $3.5 billion for the rest of Chrysler, but the numbers might change once the results of the legal dispute over the company’s stake value are released. Whatever the case, a merger is not expected to take place until next year.
“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,” said Emanuele Vizzini, chief investment officer of Investitori Sgr in Milan. “I see it as likely that they will get favorable financing by the end of the summer and then list in the U.S.”
Analysts say that a Fiat-Chrysler merger could become a better competitor for the world’s biggest automakers, Toyota, General Motors and Volkswagen.
Story via DetroitNews