Breakingviews

Fiat may find Chrysler deal is ticket out of Italy

January 5, 2012

The Turin carmaker will spend 2012 working out how to acquire the rest of the Detroit firm after raising its stake to 58.5 pct. Depending on the structure, Fiat may become Italy’s first truly global multinational - but only if the Agnelli family puts pragmatism over sentimentality.

U.S. natural gas looks irresistibly cheap vs oil

March 5, 2012

With crude prices rising and gas sliding further, oil is now eight times dearer than gas based on energy content - the biggest gap since the 1950s. Global shifts dictate the price of the black stuff but, as news from Detroit shows, local market forces should work on American gas.

Fiat pegs Chrysler as most undervalued carmaker

January 14, 2013

CEO Sergio Marchionne’s latest offer to buy a stake in Chrysler from the UAW trust sets the U.S. manufacturer’s worth at $6 bln. True, it lacks the cash and margins of Ford or GM. But it’s a purer play on a recovering U.S. market. Fiat can safely value Chrysler more generously.

Chrysler value spat may offer Fiat silver lining

April 29, 2013

The Italian automaker and a union trust are $3 bln apart on the value of the 41.5 pct of the Motown manufacturer Fiat doesn’t already own. Yet the outcome – full integration – isn’t in doubt. In the end, an urgent need to raise equity may hasten Fiat’s move from Italy to America.

Agnellis brace for Fiat-Chrysler merger endgame

June 3, 2013

The Agnellis want to maintain their 30 percent stake in Fiat after the Italian carmaker has merged with Chrysler. The 2 bln euro sale of their stake in Swiss inspection group SGS gives them ample means to take part in a potential capital hike after the deal.

Memo to Fiat on Chrysler listing: Drop it!

September 16, 2013

The Italian carmaker’s full takeover of its U.S. subsidiary is delayed by an unnecessary quarrel about its valuation. That may end with a temporary listing of a 16.6 pct stake of Chrysler. There are easier and faster ways to assess the company. Fiat should use them.

Ford shares priced for absolute perfection

January 28, 2010

Is Ford’s auto business worth $52 billion? With the company’s stock trading at over $11 a share, that’s the value investors appear to be putting on the car operations alone.

Chrysler needs $18 bln valuation to justify IPO

October 30, 2013

That’s the point where the union trust fund that owns 41.5 percent of the Detroit automaker would reap more than it could ever get from Fiat. Hitting that figure is doable but would require margins to double by 2015 and investors to forgo a minority discount. It’s a big gamble.

Chrysler IPO delay edges Fiat into driver’s seat

November 25, 2013

The union fund that owns 42 pct of the Detroit automaker needs an $18 bln total valuation to make a public listing worthwhile. Recent price talk has been considerably lower. Pushing the stock sale into next year suggests majority owner Fiat is in a better negotiating position.

GMAC shows it’s time to roll up TARP

November 2, 2009

The end result is a sort of crony capitalism where TARP money -- originally meant for buying toxic bank assets -- is propping up a politically sensitive sector of the economy while subjecting it to political control.