Fiat-Chrysler CEO Sergio Marchionne asks banks to help him with his plan to acquire the rest of Chrysler’s shares.
According to sources familiar with the news, Marchionne had told bankers that it is worth taking the risk of investing in his plan, due to Chrysler’s $1.7 billion profit, its market share gains in the US and Fiat’s turnaround plan in Europe. Marchionne asked for additional financing options, among which a bridge loan to offer Fiat the necessary amount of money to purchase the Chrysler shares owned by VEBA, the a United Auto Workers trust fund.
It cannot be estimated how much money Fiat would need from the banks, as the automaker and VEBA are still unable to find common ground for a pricing formula for the trust’s shares. Therefore a federal judge is in charge of doing this, after the two companies found no other solution but to take the matter to the court.
Marchionne, who previously said it plans to acquire Chrysler by the end of 2013, now plans to close the deal by the end of March. Goldman Sachs predicts that Fiat will have to pay $3 billion to buy VEBA’s 41.5% stake, other believe the number will reach $5 billion.