Fiat shares up in Milan trading after deal with union trust fund to acquire rest of Chrysler | iNFOnews | Thompson-Okanagan's News Source

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Fiat shares up in Milan trading after deal with union trust fund to acquire rest of Chrysler

Rain falls on a Fiat logo pictured on a car in Milan, Italy, Thursday, Jan. 2, 2014. Italian automaker Fiat SpA announced that it reached an agreement to acquire the remaining shares of Chrysler for $3.65 billion in payments to a union-controlled trust fund. Fiat already owns 58.5 percent of Chrysler's shares, with the remaining 41.5 percent held by a United Auto Workers union trust fund that pays health care bills for retirees.( AP Photo/Antonio Calanni)
January 02, 2014 - 5:16 AM

ROME - The price of Fiat shares is soaring after the Italian automaker announced it had clinched a deal to acquire the rest of Chrysler, with no plans for a capital increase.

The share price on the Milan exchange soared 12 per cent Thursday, having been up by as much as 15.8 per cent earlier in the day.

Fiat SpA trumpeted the announcement Wednesday night that it had reached an agreement with the United Auto Workers union-controlled trust fund holding 41.5 per cent of Chrysler's shares. Fiat already possesses the remaining shares. Fiat says it will pay $1.75 billion (about 1.35 billion euros) in cash at hand. Another $1.9 billion (almost 1.5 billion euros) will be paid as extraordinary dividends.

The deal is due to close by Jan. 20.

News from © The Associated Press, 2014
The Associated Press

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