Friday, April 26, 2013

Fiat car company going to have enough money to acquire Chrysler





- Reuters Fiat could earn enough cash in May to buy the remaining 41.5% stake in the car maker Chrylser.

 Italian carmakers are having positive negotiations with the bank to fund the purchase of shares by the VEBA, trust fund health care professional who retired auto workers, owners. The negotiations are expected to end next month.
The carmaker, based in Turin in seeking to raise funds of about 3 billion euros (4 billion U.S. dollars) and hope to reach an agreement with VEBA in early July.
Senior executive officer of Fiat Sergio Marchionne to merge the two automakers to build cars empire seventh largest in the world. The agreement also allows Fiat Chrysler's cash flow used to offset losses in Europe.
According to analysts, account for 41.5% of the VEBA stake in Chrysler with an estimated value of USD 3.5-4 billion. However, this price is the legal battle between Fiat and the VEBA.
Earlier this month, Marchionne said that his car company may need from 2.5-3 billion euros (3.3 to 3.9 billion dollars) to carry out the deal, but he did not disclose more more.
Although Fiat has cash reserves of about 9 billion euros (11.9 billion dollars) as of 31/12/2012, but they will need to put further funds to Chrysler merger in order to maintain the level of assessment confidence for this new empire.
Mr. Marchionne to merge the two carmakers and avoid offering to conduct an initial public (IPO), but he did not rule out the possibility of listing on the stock market if Fiat and VEBA not reach an agreement.

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