Fiat rises to highest in nearly 2 yrs on Chrysler buyout talk

MILAN Tue May 28, 2013 3:36am EDT

MILAN May 28 (Reuters) - Shares in Italian car maker Fiat rose more than 4 percent to a peak since August 2011 on Tuesday as speculation over a deal to buy the 41.5 percent stake it does not already onw in Chrysler continued.

Italian newspapers said on Tuesday negotiations were in a decisive phase and Corriere della Sera said Fiat would unlikely pay less than $3 billion for the stake controlled by the U.S. healthcare trust fund VEBA.

Corriere said a Fiat capital hike would be the best way to raise new resources ahead of a Wall Street listing of the merged group.

By 0729 GMT, the stock was up 4.6 percent at 5.92 euros.

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Comments (1)
2happy wrote:
Fiat’s current price is about $7 per share which is less than the value of the 60% of Chrysler they own. When they get the remaining 40% they will own 100% of a company worth about 15 Billion all at a market cap of 6.5 Billion. I look for Fiat to double in 6 months and to increase as Europe recovers. Maybe $20-25 by 2015.

May 28, 2013 8:55am EDT  --  Report as abuse
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