Fiat Share Prices Fall as European Banks Become More Weary

 

The CEO of Fiat, Sergio Marchionne had recently announced that he was interested in acquiring the rest of Chrysler, and completely merge the two companies. However, this ‘announcement’ has made two European banks become more weary of the situation, and so, they`ve downgraded Fiat’s stock.

One bank, UBS AG, is changing the status of the company’s stock from a ‘buy’ rating, to a ‘neutral’ rating, while Deutsche Bank changed the stocks’ status from ‘hold’ to ‘sell. Now, as Chrysler is currently much more profitable than Fiat, and dragging it along for the ride, Marchionne is undoubtedly keen to get more of the profits of the American market, which is working much better than the one in Euope, and will do so for at least another two or three years, according to analysts.

Also, this past Tuesday, Fiat shares fell by 5.9%, the event which prompted the two aforementioned banks to react. They still need somewhere in the eregion of 1.6-billion to 2.9-billion euros to get the rest of Chrysler, yet it is highly doubtful that they actually have that much money to spend, given the current situation.

Story via detroitnews.com