In the car business it is known as

In the car business it is known as zero per cent financing. The deal enabling Fiat to buy the rest of Chrysler could almost have been struck at a dealership.

Fiat will buy the 41.5 per cent of the US car group that it does not already own from the Veba healthcare trust for a total of $4.35 billion. The ingenious bit is that nearly half of that sum – $1.9 billion – comes from Chrysler itself. This means that Fiat will not need new equity…The buyout satisfies nearly everybody, especially the hard-to-please Sergio Marchionne, chief executive of both companies… There is certainly value to be reaped in full ownership… That will not be easy, though. The Fiat-Chrysler group is indebted, and the debt will be increased by the buyout… New equity has been avoided, for now. But it remains a medium term probability for Fiat-Chrysler. The Lex Column
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