Fiat currently owns 58.5% of Chrysler , and has in the pocket extend that control to 65% by acquiring shares in the company of Detroit through a previously signed agreement with the VEBA (Voluntary Fund for retired workers Company), which controls the shareholding. Marhcionne said earlier this year that through the exercise of that agreement, Fiat progressively extended its control over Chrysler to 75.1%.
But Bloomberg reports this morning that, in parallel, Fiat could be negotiating with banks to complete an operation to be with the remaining 41.5% will be remains to Chrysler by the end of 2014. Among the operations studied are direct loans, bridge loans (which would cancel just complete the operation, paying part of the account equity of the combined company), and other possible maneuvers.
Analysts say that to complete the purchase of 41 , 5% stake in Chrysler, Fiat needs 2,230 million euros. Currently the Turin-based company manages a liquid of 9,100 million euros, with 1,950 million euros at its disposal in the form of credit lines active. In total we are talking of about 11.0000 million deal that would allow this without asking for money from anyone.
But Fiat is interested in touching their working capital, and use some other maneuver that, at least in part, serves to finance the operation. Control 100% of Chrysler, or at least three quarters of it, would give access to the financial resources of the company accumulated Detroit (almost another 10,000 million euros), while it would strengthen the process of unification of both structures, to get deeper into the extra return to share the “basic skeleton of operation”.
Analysts say that in order to address this process, Fiat should increase liquidity, by selling some of its assets or take out a capital increase , both ends Marchionne has repeatedly denied.
All these movements are gaining momentum, with the expectation that the VEBA may decide to lift the bag that he still shares in the portfolio for a market valuation “real” than worth. Analysts say, if this happens, the “invoice” to stay with Chrysler could go to 3,300 million euros, which would be a “bonus” of 1,100 million above current price.
