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Article: Analysts gauge GM-Fiat costs to companies, their investors.
- Article from:
- Detroit Free Press (Detroit, MI)
- Article date:
- February 15, 2005
CopyrightCOPYRIGHT 2005 Detroit Free Press. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jamie Butters
Feb. 15--A day after General Motors Corp. averted a forced purchase of Fiat Auto , investors and analysts sorted out the winners from the losers.
In the short run, the judgment was positive for Fiat shareholders, neutral for GM shareholders and negative for GM bondholders. GM shares ended slightly higher Monday, but a pessimistic report on its bonds sent debt prices down.
GM and Fiat announced Sunday that GM would pay $2 billion, and Fiat would give up its right to force GM to buy its auto business. They will continue to share a plant in Poland and some other operations.
The 2000 transaction that put the two in ...