Fiat SpA has reached out to banks for the refinancing of its Eur1.95 billion or US$2.5 billion credit facility as it determines its next step regarding Chrysler Group LLC shares it does not own. The move was confirmed by two individuals familiar with the matter who spoke on the condition of anonymity.
CEO of Fiat and Chrysler Sergio Marchionne is moving as quickly as next month to refinance the revolving credit line that would expire next year. This would be used to acquire the remaining 41.5% shares of Chrysler currently held by United Auto Workers medical benefits trust. Upon the acquisition of the shares, the two carmakers would result in a unity of a global automaker from the two separate entities.
The UAW confirmed that there are ongoing discussions between the Italian carmaker and the union's trust fund in preparation for a possible sale of the stake it manages for its retirees. Amongst the options being considered is the buyout of the fund or the fund conducting an IPO to sell its shareholdings.
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