A German magazine earlier this month reported VW Chairman Ferdinand Piech had held talks with Fiat owners about buying all or part of the group.
The CEO also says he still expects to list the merged Fiat Chrysler in the U.S. in the first two weeks of October, and says Q2 results, which will be released next week, were in line with expectations.
Fiat (FIATY) has agreed to pay $4.35B to acquire the 41.5% stake in Chrysler owned by the United Auto Workers Retiree Medical Benefits Trust.
The deal ends a long-running dispute over the valuation of Chrysler - which is just over $10B under the agreement - and helps pave the way for the consolidation of the companies into a single global automaker with combined sales of 6M vehicles and 2012 revenue of €84B.
The transaction also means that Chrysler's prospective IPO will probably be called off. (PR)
Fiat (FIATY.PK) has agreed to acquire GM's (GM) 50% holding in the car-makers' joint venture, VM Motori, which manufactures diesel engines for various vehicles, including the Jeep Wrangler and Grand Cherokee.
Chrysler is preparing to file for an IPO this week and could list this year, CEO Sergio Marchionne has told the FT, although the flotation is more likely to take place in Q1 2014.
Marchionne, who's also the CEO of 58.5% Chrysler owner Fiat (FIATY.PK), said he's going to the market to determine the value of the shares held by a retirement trust, which owns the rest of the U.S. car maker.
The trust wants $10.3B but Fiat values the holding at $4.2B. "The market will tell us. Let the market talk," Marchionne said.
The dispute has held up the full merger of Fiat and Chrysler, although the IPO will also delay plans to streamline the two car makers and pool their resources.
Fiat (FIATY.PK) is reportedly in negotiations with major banks to borrow up to $10B that the Italian carmaker would use to acquire the 41.5% of Chrysler it doesn't own and refinance the two companies' debt at lower interest rates. The banks include Bank of America (BAC), Deutsche Bank (DB), Goldman Sachs (GS) (GS) and BNP Paribas (BNOBF.PK). Fiat's purchase of the holding is being held up by a legal dispute over the value of the stake.
Fiat CEO (FIATY.PK) Sergio Marchionne has reportedly approached Goldman Sachs, BofA, Deutsche Bank and other banks about financing the Italian car maker's attempt to buy the 41.5% of Chrysler held by a union-run trust. The acquisition of the stake, which is worth $1.75-4.27B depending on whom you ask, would give Fiat access to Chrysler's $11.9B in cash and allow the combined company to carry out an IPO in New York.
"Opel is a fully integrated part of GM's global footprint and vital for GM's future success in Europe," says company exec Steve Girsky, reiterating the brand isn't for sale. Earlier, an Italian newspaper reported, talks to sell the unit to Fiat were set to restart.
Fiat (FIATY.PK) intends to renew talks to acquire Opel from GM (GM) if the U.S. car manufacturer decides to sell the perennial loss maker, Italian newspaper Il Sole 24reports, with Fiat hoping to get Opel for free. Fiat had tried to buy Opel in 2009.
Fiat (FIATY.PK) says it will spend $1.3B to raise its controlling stake in Chrysler to 46%, and aims to acquire a majority shareholding this year, which would “enable us to bring to fruition the vision upon which the alliance was founded: the creation of an efficient and competitive global automaker," says Sergio Marchionne, chief executive of both firms. (PR)
Fiat S.p.A. Torino is the holding company of the Fiat Group. Through its subsidiaries, Co. is engaged principally in the manufacture and sale of automobiles, commercial vehicles and agricultural and construction equipment. Co. is organized into operating sectors, divided in the two major...More