U.S. automaker Chrysler, which was bailed out by taxpayers at a loss of $1.3 billion, will become fully owned by Italy’s Fiat.
The agreement comes more than 4-1/2 years after the Obama administration brought Fiat in to keep Chrysler in business as part of a packaged bankruptcy proceeding.
Fiat said it has agreed to pay $3.65 billion for the 41.46% of Chrysler it doesn’t already own from the UAW’s medical benefits trust for retirees.
Fiat shares gained nearly 13% in Milan early Thursday to trade at €6.70, their highest level since July 2011.
It's interesting that Fiat stock went up, since--at least in the USA--an acquirer's stock often drops on news of an impending acquisition. OTOH, as the LA Times reminds us:
The federal government led the effort to remake Chrysler as part of a $12.5-billion bailout that, along with the $51-billion rescue of General Motors Co., was designed to save the U.S. auto industry during the depths of the recession.
Fiat purchased the government's remaining stake in Chrysler in 2011, ending the bailout with a taxpayer loss of $1.3 billion.
So maybe Obama should be the one reimbursing US taxpayers. I'd be happy to settle for a cut of the money he'll inevitably make writing his memoirs and giving speeches.