Fiat shares up in Milan trading after deal with union trust fund to acquire rest of Chrysler
ROME – The price of Fiat shares is soaring after the Italian automaker announced it had clinched a deal to acquire the rest of Chrysler, with no plans for a capital increase.
The share price on the Milan exchange soared 12 per cent Thursday, having been up by as much as 15.8 per cent earlier in the day.
Fiat SpA trumpeted the announcement Wednesday night that it had reached an agreement with the United Auto Workers union-controlled trust fund holding 41.5 per cent of Chrysler’s shares. Fiat already possesses the remaining shares. Fiat says it will pay $1.75 billion (about 1.35 billion euros) in cash at hand. Another $1.9 billion (almost 1.5 billion euros) will be paid as extraordinary dividends.
The deal is due to close by Jan. 20.
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