Fiat wants to buy more Chrysler stock
Italian automaker Fiat has exercised a third option to buy a small amount of Chrysler stock, but the sale won’t go through until a U.S. court settles a dispute over the price.
Fiat said Monday that it offered $254.7 million for an additional 3.3 percent of Chrysler’s outstanding equity.
Fiat already owns 58.5 percent of Chrysler, with the remaining 41.5 percent held by a trust that pays medical bills for retired United Auto Workers union members. The Italian company wants to buy all of the trust’s stock and fully merge Chrysler and Fiat.
The price on the options will be settled by a judge in Delaware Chancery Court, and the ruling is likely to set the price for the trust’s remaining Chrysler stake. For several months, Fiat has been trying to arrange financing to buy the trust’s stock. Fiat expects a court ruling sometime this month.
Americans increased their borrowing in May at the fastest pace in a year. Borrowing in the category that includes credit cards reached its highest point since the fall of 2010.
Increased borrowing typically means that consumers are feeling more confident.
Americans stepped up their borrowing by $19.6 billion in May compared with April, the Federal Reserve said Monday in its monthly report on consumer credit. That was the biggest jump since a $19.9 billion rise in May 2012.
Total borrowing reached a record $2.84 trillion.
The category that includes credit-card use rose $6.6 billion, also the largest gain in a year. Credit-card debt reached $847.1 billion, the most since September 2010. Credit-card debt remains about 16 percent below its high of $1.02 trillion in July 2008 — just before the financial crisis erupted.
Borrowing for autos and student loans rose $13 billion in May. That was the sharpest increase since February.
Alcoa posts loss
Strong demand for lightweight aluminum in autos and airplanes is helping Alcoa Inc. cope with lingering weak metal prices.
The company said Monday that its second-quarter loss was wider than a year ago. But excluding costs for closing smelters and other restructuring and legal expenses, the results slightly beat Wall Street expectations.
The company stuck to its forecast of 7 percent growth in global aluminum demand this year.
Billionaire Warren Buffett is giving five charities more than $2.6 billion worth of Berkshire Hathaway Inc. stock as part of his overall plan to give away his fortune gradually.
Buffett announced the annual gifts Monday. The biggest block of Class B shares of Berkshire stock worth $2 billion is going to the Bill and Melinda Gates Foundation.
Buffett also gave 1.75 million shares to his own foundation and 1.2 million shares to each of his three children’s foundations.