Fiat CEO says mandatory convertible bond issue an option after Chrysler merger
Italian carmaker Fiat S.p.A.'s chief executive said that the company could use a mandatory convertible bond as a way of financing investments after its $4.35 billion deal to buy the rest of American subsidiary Chrysler Group LLC.
Accoring to a report by Reuters, Fiat CEO Sergio Marchionne told Italian newspaper La Repubblica that a mandatory convertible bond could be an appropriate measure. Marchionne however would not comment on a potential €1.5 billion ($2.04 billion) size for the bond mentioned in media reports.
Marchionne said his new strategy to turn around Fiat's loss-making operations in Europe would focus on a relaunch of the Alfa Romeo brand. The Fiat CEO said that selling Alfa Romeo to a competitor was out of the question, the report stated.
Marchionne also said that the Fiat-Chrysler combine would be listed where access to capital was easier, adding that both New York and Hong Kong were options for the listing, Reuters reported.
Wall Street Journal in April reported that Fiat will launch an initial public offering of the combined company to replenish its balance sheet. An IPO would mark Chrysler's return to the public markets since it went private in 2007.