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Fiat To Raise Chrysler Stake To 30%
Fiat is set to increase its stake in Chrysler Group to 30% from 25%.
Fiat is set to increase its stake in Chrysler Group to 30% from 25%, The Wall StreetJournal reports. The company will get the additional 5% stake once the Italian auto maker completes two international sales goals established by the U.S. government as part of the 2009 federal bailout of Michigan-based Chrysler.
Chrysler’s current shareholders, the United Auto Workers’ health care trust, the U.S. Department of Treasury and the Canadian government, will each abandon a small percentage of their stake to give Fiat the additional 5% stake. Fiat will not be allowed to increase its stake to 51%, until Chrysler pays back the $7.4 billion it owes the U.S. and Canadian governments.
Click here for the story from The Wall Street Journal.
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