A report from the Associated Press states that Fiat opened discussion with the federal and Ontarian governments in hopes of acquiring the 1.7% stake in Chrysler they received during the bailout initiative in 2009.
The president and CEO of Chrysler/Fiat, Sergio Marchionne, met with Finance Minister Jim Flaherty yesterday at a casting plant to announce the repayment of the 1.7 billion dollar loan as well as state his buy-back intentions.
Mr Flaherty said that he’d rather wait and see how the 6.6% stock transfer goes in the U.S. before making a decision.
Unlike the United States, Canada isn’t obligated to sell its shares.
Fiat, who already owns 46% of Chrysler’s shares, would increase its stake to 54.3% if the deal goes through with the Canadian and American governments.
In exchange for developing a fuel-efficient model for Chrysler, Fiat should also receive an additional 5% during the fourth quarter of 2011.
Source : Detroit News
The president and CEO of Chrysler/Fiat, Sergio Marchionne, met with Finance Minister Jim Flaherty yesterday at a casting plant to announce the repayment of the 1.7 billion dollar loan as well as state his buy-back intentions.
Mr Flaherty said that he’d rather wait and see how the 6.6% stock transfer goes in the U.S. before making a decision.
Unlike the United States, Canada isn’t obligated to sell its shares.
Fiat, who already owns 46% of Chrysler’s shares, would increase its stake to 54.3% if the deal goes through with the Canadian and American governments.
In exchange for developing a fuel-efficient model for Chrysler, Fiat should also receive an additional 5% during the fourth quarter of 2011.
Source : Detroit News