Fiat SpA plans to exercise an option to buy the U.S. Treasury's stake in Chrysler, which paves the way for the Italian automaker to clinch a majority share in the company by early next month, Reuters reported. Fiat notified the U.S. Treasury of its intent on Friday. The purchase price will be based on the equity value of Chrysler agreed by Treasury and Fiat within 10 business days. If Fiat and Treasury cannot settle on the price, the amount will be determined by two of three investment banks appointed by the company and the U.S. government. The option would allow Fiat to increase its stake in Chrysler by 6 percent, Fiat said in a release on Friday. Treasury confirmed that it received notice from Fiat, but declined to discuss the announcement further. This week, Fiat boosted its stake in Chrysler to 46 percent after repaying $7.6 billion in loans from the United States and Canada through a refinancing deal. A deal with Treasury would bring its stake to 52 percent. Fiat's announcement comes ahead of President Barack Obama's planned visit to a Chrysler plant in Toledo, Ohio, next week.
