Thursday, April 21, 2011

Fiat aims to control Chrysler sooner - The Boston Globe

 

Chrysler owes the US and Canadian governments about $7.53 billion. Marchionne needs a refinancing deal with banks to pay back the government before he can exercise his option to buy the additional stake

Fiat SpA will pay $1.27 billion to reach a 51 percent stake in Chrysler Group as chief executive Sergio Marchionne is set to gain control of the US automaker two years earlier than planned.

saving money by making the purchase earlier because the cost is linked to the company’s earnings. Marchionne is pushing Chrysler to post its first net income this year since emerging from bankruptcy.

Chrysler expects to almost triple what it calls modified operating profit (excluding interest, taxes, and some pension costs) to more than $2 billion from $763 million last year and to earn as much as $500 million in net income.

Click on the following for more details:   Fiat aims to control Chrysler sooner - The Boston Globe

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