Fiat (FIA.MI) could use a mandatory convertible bond as a way of financing investments after its $4.35 billion deal to buy the rest of Chrysler, the Italian carmaker’s chief executive said in an interview with Italian newspaper La Repubblica.
“A mandatory convertible bond could be an appropriate measure,” Sergio Marchionne told the paper. He would not comment on a potential 1.5 billion euro size for the bond mentioned in media reports.
Marchionne also said his new strategy to turn around its loss-making operations in Europe would focus on a relaunch of the Alfa Romeo brand and selling it to a competitor was out of the question.
The chief executive said the new merged Fiat-Chrysler would be listed where access to capital was easier, adding that both New York and Hong Kong were options.
REUTERS
