Fiat Interested in Canadian Chrysler Stake
Taking a trip to Canada, to the casting plant the Americans own in Toronto, Fiat CEO Sergio Marchionne said that he has discussed with Canadian Finance Minister Jim Flaherty the possibility of buying the tiny fraction Canada owns since it helped Chrysler survive its bankruptcy.
The problem here is that Fiat, unlike in the US, has no way through which to convince the Canadian government to sell. And the Canadian government is proving to be, at least for now, reluctant to the idea, Flaherty saying that his government would rather wait and see how things play out in the US before taking any decisions.
Not the same will happen to the South. After repaying the entire bailout loan six years ahead of schedule, Fiat announced it will go for the US' remaining 6 percent, bringing the Italians stake to 52 percent. By the end of 2011, Fiat is said to be planning another share acquisition, one that would land it a 57 percent stake.
On May 24, Chrysler repaid the $6.7 billion it owed, plus interest. On Tuesday, Chrysler made a payment of $5.9 billion to the US Treasury and $1.7 billion to Export Development Canada (EDC). An extra $2.6 billion from the original loan facilities was undrawn and the facilities have been canceled.