To be able to make up for flagging European sales, Fiat is striving to buy up remaining Chrysler stock from the United Auto Workers medical advantages trust. The shares could surpass $3 billion.
Share worth being discussed
Recently, it has been seen that Fiat and Chrysler CEO Sergio Marchionne has been attempting to get the UAW-held Chrysler stock. There has been a disagreement over the worth of the stock for many years, which is why Marchionne is talking privately to banks about this.
According to Automotive News, Fiat is willing to go as high as $2.98 billion in loans to get all the shares, which could happen in the next 12 months, according to Gold Sachs Group Inc.
Helping Fiat out
By bringing Fiat and Chrysler together under one banner, Marchionne hopes that sustained Chrysler earnings will help to end Fiat's mass-market losses in the European market by as early as 2015. Without Chrysler on the books, Fiat would have posted a $1.9 billion loss in 2012.
"We believe the deal remains inevitable," said Max Warburton, an analyst at London-based Bernstein Research. "The move will allow Fiat and Chrysler to pool cash in due course and ensure that Chrysler's cash generation can support Fiat."
Looking at possible share worth
Fiat may have to boost capital by $2.6 billion if the deal is really going to go through, which will not contain selling its stake in Ferrari, Fiat publicized. The bank negotiation process will proceed.
If you ask Marchionne, he will tell you that he will get the deal done by the end of 2014. He also plans on making $6.1 billion in profit for 2013 for Fiat/Chrysler. Warburton explained that the United Auto Workers shares might be worth anywhere from $1.8 billion to $4.4 billion after the fourth-quarter IPO, so anything could happen.
Share worth being discussed
Recently, it has been seen that Fiat and Chrysler CEO Sergio Marchionne has been attempting to get the UAW-held Chrysler stock. There has been a disagreement over the worth of the stock for many years, which is why Marchionne is talking privately to banks about this.
According to Automotive News, Fiat is willing to go as high as $2.98 billion in loans to get all the shares, which could happen in the next 12 months, according to Gold Sachs Group Inc.
Helping Fiat out
By bringing Fiat and Chrysler together under one banner, Marchionne hopes that sustained Chrysler earnings will help to end Fiat's mass-market losses in the European market by as early as 2015. Without Chrysler on the books, Fiat would have posted a $1.9 billion loss in 2012.
"We believe the deal remains inevitable," said Max Warburton, an analyst at London-based Bernstein Research. "The move will allow Fiat and Chrysler to pool cash in due course and ensure that Chrysler's cash generation can support Fiat."
Looking at possible share worth
Fiat may have to boost capital by $2.6 billion if the deal is really going to go through, which will not contain selling its stake in Ferrari, Fiat publicized. The bank negotiation process will proceed.
If you ask Marchionne, he will tell you that he will get the deal done by the end of 2014. He also plans on making $6.1 billion in profit for 2013 for Fiat/Chrysler. Warburton explained that the United Auto Workers shares might be worth anywhere from $1.8 billion to $4.4 billion after the fourth-quarter IPO, so anything could happen.
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