Fiat Committed to Buying Remaining 41.5% of Chrysler

Chrysler 1 photo
Photo: Chrysler
After seeing that Chrysler is actually profitable, and so much so that it is dragging Fiat along for the ride, Sergio Marchionne is now convinced that buying the remaining 41.5% of the Chrysler Group is what has to be done. However, buying the actual shares will be a bit tricky, as their price has to be discussed with the UAW union trust fund, which currently owns them, after having bought them during Chrysler’s 2009 bankruptcy and bailout situation.
If the two parties don`t reach a common agreement by the end of the year, then the shares will be put through a process which will ultimately get them to end up in the hands of the public. An initial estimate of the amount which Fiat needs to come up with in order to get the desired 41.5%, is estimated to be between $4.1- and $5.5- billion, or €3.1- and €4.12- billion, as the entire company is rated at between $9- and $13.4-billion.

Still, even if a decision is not reached by the end of 2012, since the initial public offering process will take months to be put in motion, Fiat will still have time to buy off the remaining shares, if they act quickly at the start of 2013.
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