Fiat in talks with banks for $10 billion funding to buy out Chrysler

May 30, 2013
Italian carmaker Fiat SpA is negotiating financing from a pool of banks for the acquisition of the remaining shares in its US partner Chrysler.

Italian carmaker Fiat SpA is negotiating $10 billion financing from a pool of banks for the acquisition of the remaining shares in its US partner Chrysler, agency Bloomberg reported quoting people familiar with the matter.

The funding would serve to acquire the remaining 41.5 percent stake in Chrysler from the VEBA trust fund and to refinance its debt, said Bloomberg, whose source wished to remain anonymous as the discussions are private.

The pool of banks Fiat is negotiating the loan with include Bank of America Corp., Deutsche Bank AG, Goldman Sachs Group Inc. and BNP Paribas SA and other lenders may also take part in the financing, according to the report.

Fiat CEO Sergio Marchionne targets to complete the acquisition by the end of the summer, pending the court's decision on the value of the Chrysler stake in the hands of VEBA, the sources said. The Italian group has received so far verbal agreements from some of the banks, but no final deal has been signed, Bloomberg said.

Representatives of Goldman Sachs, Bank of America and Fiat declined to comment, Bloomberg said. A spokeswoman for BNP Paribas also declined to comment, while a spokeswoman for Deutsche Bank could not be reached for comment, the agency added.

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