The Detroit News reports that Fiat is looking to raise $10 billion in order to acquire the remaining 41.5 percent of Chrysler, currently held by the retiree trust of the United Auto Workers. Fiat is in discussions with Bank of America Corp., Deutsche Bank AG, Goldman Sachs Group Inc. and BNP Paribas SA.
“The merger is the right choice for Marchionne and the only possible option to avoid Fiat being marginalized or bought by a competitor in the medium term,” said Emanuele Vizzini, chief investment officer of Investitori Sgr in Milan. “I see it as likely that they will get favorable financing by the end of the summer and then list in the U.S.”
With this deal Fiat and Chrysler may merge into a single company based in the U.S. and then issue shares for the combined entity.