Fiat has option to boost Chrysler stake: financial source

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Fiat has option to boost Chrysler stake: financial source

5 days ago

MILAN (AFP) — The Italian auto group Fiat, which has agreed to take 35 percent of Chrysler, has an option to increase its holding in the struggling US car maker to 55 percent, a financial source said on Wednesday.

"Fiat has an option to take 20 percent more (of Chrysler capital) over the next three years," the source told AFP, after a report to this effect in the Wall Street Journal.

Fiat declined to comment.

On Tuesday, Fiat and Chrysler announced a draft partnership agreement under which Fiat would obtain 35 percent of Chrysler in return for providing the US group with technology.

The agreement is expected to be completed in April and would need endorsement from the US government, which has just provided Chrysler with 5.5 billion dollars 4.2 billion euros) in rescue finance.