Fiat SpA is in talks for as much as $10 billion in financing to acquire 41.5% stake in Chrysler and refinance the two automakers’ debt, Bloomberg reported citing people familiar with the matter.
Fiat is discussing loan agreements with Bank of America Corp., Deutsche Bank AG (DBK), Goldman Sachs Group Inc. (GS) and BNP Paribas SA (BNP).
Fiat intends to buy the 41.5% Chrysler stake held by the United Auto Workers’ retiree health-care trust, according to unnamed people.
Fiat aims to complete the purchase by the end of the summer, pending the results of a legal case between Fiat and the health-care trust over the value of its Chrysler stake, the people said.
Sergio Marchionne, who runs both Fiat and Chrysler, plans to combine the two companies to form a global auto manufacturer group to challenge General Motors and Volkswagen AG, according to news report.
Source: Bloomberg News
