ROME -- The price of Fiat shares is soaring after the Italian automaker announced it had clinched a deal to acquire the rest of Chrysler, with no plans for a capital increase.
The share price on the Milan exchange soared 12 percent Thursday, having been up by as much as 15.8 percent earlier in the day.
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Fiat SpA trumpeted the announcement Wednesday night that it had reached an agreement with the United Auto Workers union-controlled trust fund holding 41.5 percent of Chrysler's shares. Fiat already possesses the remaining shares. Fiat says it will pay $1.75 billion (about 1.35 billion euros) in cash at hand. Another $1.9 billion (almost 1.5 billion euros) will be paid as extraordinary dividends.
The deal is due to close by Jan. 20.