Fiat to take majority stake in Chrysler

Fiat says it will buy the US government's 6% stake in Chrysler, which
will give the Italian carmaker a majority share in the US company.
After Chrysler emerged from bankruptcy protection in 2009, Fiat agreed
with the US government to share technology and management in return
for a 20% stake and has quickly built that up. Buying out the
government would give Fiat 52% ownership of Chrysler. The price will
be negotiated within 10 business days, Fiat said. In a statement, Fiat
notified the US Treasury that it was exercising its option to buy the
government's share. Its stake is likely to increase to 57% by the end
of the year, when it is expected to have met certain government
targets. On Tuesday, Chrysler said it had repaid $7.6bn (£4.7bn) in US
and Canadian government loans, six years ahead of schedule. Earlier
this month, it reported a profit of $116m (£69m) in the first three
months of the year, its first quarterly profit since it emerged from
bankruptcy protection.
---------------BBC ONLINE