Tuesday 30 October 2012

Fiat's investment plans slow Chrysler ownership

(AP) ? Italian automaker Fiat's plan to increase capital investments in Italy will slow the completion of its acquisition of Chrysler.

Fiat and Chrysler CEO Sergio Marchionne told investors that due to new Fiat investments announced Tuesday there "is no room left for the acquisition of the minority interest in Chrysler. "

That will leave Chrysler's minority shareholders ? the United Auto Workers health care trust fund ? the option to push for a public stock offering as early as January.

Marchionne said he's not bothered by the option. He said he is more concerned about being able to complete the purchase of the 3.3 percent stake held by the trust. Fiat exercised a call option in 2009, but the parties have not agreed on a price.

Fiat owns 58.5 percent of Chrysler.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2012-10-30-Fiat-Chrysler/id-717048bf29444e47868a4f0babc286e5

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