Fiat Planning on Raising its Stake in Chrysler to 46%
Fiat is looking to pay about $1.5 billion for an additional 16 percent in Chrysler, which it hopes to purchase in the coming months.
Italy's biggest industrial group is also working to raise 1.5 billion euros ($2.17 billion) through a credit facility.
Fiat already owns 30 percent of Chrysler and could raise its stake to 46 percent through the purchase of shares issued by the U.S. automaker as soon as Chrysler manages to repay the $7 billion it owes to U.S. and Canadian governments.
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Adam's Commentary:
I'm still scratching my head. I do not fully understand the bailout of Chrysler. Supposedly, Chrysler was not viable on its own and needed investment. Our government along with the Canadian government loaned money to Chrysler to keep Unions employed and working in North America while courting an Italian company to take future ownership. Essentially, our taxpayer dollars were invested to prop up a dead company, bring it back to life, all for the benefit of a foreign corporation. Was that in our best interests?
