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Fiat Buys Fed Bailout?

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http://www.bbc.co.uk/news/business-25571200

Italian motor giant Fiat has agreed to buy the remaining 41% of Chrysler it does not own in a move that will create the world's seventh-largest car company.

Fiat has owned a majority stake in the US company since 2009.

The agreement ends long negotiations with the current owners, Veba, the healthcare trust affiliated to the United Auto Workers' union (UAW).

Chrysler and Fiat will pay the trust an initial $3.65bn (£2.2bn).

Once the deal is signed off, Chrysler will pay Fiat another $700m.

Fiat's chief executive, Sergio Marchionne, plans to widen the company's global reach.

The Veba trust looks after medical benefits for 117,000 retired Chrysler workers and their dependents.

Robert Naftaly, chair of the committee that governs the trust said: "This agreement is in the best interests of the trust's UAW Chrysler retiree members and their families who rely on the trust to provide vital health care benefits."

So who's on the hook for a future bailout here? The Fed to bailout an Italian company and the Italian taxpayer, or is uncle Sam offloading the risk to the Italian taxpayer?

I'm sure someone has got a real bargain here....

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As usual Sergio Marchionne has got a good deal and refused to be bullied into paying a higher price for the remaining stake.

Fiat shareholders have got a good deal. Fiat group now owns Ferrari, Maserati, Alfa Romeo, Fiat, Chrysler, Dodge and Jeep.

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Oh dear, seems like yesterday: (Beeb, Monday, 14 February, 2005)

http://news.bbc.co.uk/1/hi/business/4263125.stm' rel="external nofollow">
Fiat had sold GM a stake in 2000, as part of a partnership agreement.
But Fiat's heavy losses have convinced GM - whose own European operations are in the red - to back away.

In 3.5 years did so much really change?

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1388662670[/url]' post='1102441350']

Oh dear, seems like yesterday: (Beeb, Monday, 14 February, 2005)

http://news.bbc.co.uk/1/hi/business/4263125.stm' rel="external nofollow">
Fiat had sold GM a stake in 2000, as part of a partnership agreement.
But Fiat's heavy losses have convinced GM - whose own European operations are in the red - to back away.

In 3.5 years did so much really change?

The multipla did have a facelift.

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