UPDATE 1-Chrysler-Fiat alliance gets U.S. antitrust OK

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WASHINGTON, May 14 (Reuters) - Chrysler LLC's [CCMLPD.UL]
planned alliance with Italy's Fiat (FIA.MI) poses no
competitive issues, the U.S. Federal Trade Commission said on
Thursday.

Chrysler filed for bankruptcy on April 30 and also agreed
to an alliance with Fiat, in which the Italian carmaker will
have an initial stake of 20 percent.

The deal will allow Fiat to own up to 35 percent as it
makes investments in U.S. operations and small-car technology
for Chrysler. Fiat could eventually own 51 percent after
Chrysler repays loans to the U.S. government.

Norman Armstrong, acting deputy director of the FTC's
Bureau of Competition, said in a statement that the agency
would not object to the Chrysler-Fiat deal.
(Reporting by Diane Bartz; Editing by Tim Dobbyn)