Fiat increases stake in Chrysler to 30pc*****

ROME, April 12 (AFP): Fiat has increased its holding in embattled Chrysler from 25 per cent to 30 per cent, the Italian auto giant announced from its Turin headquarters Tuesday. The expected move "to increase by 5 per cent our participation in the capital of Chrysler has been completed," the company said in a statement. Fiat chief Sergio Marchionne had said Monday that the move was imminent. Marchionne, who also heads up the US auto company, said in January that Fiat may boost its holding to 51 per cent before a planned share offer by the Chrysler Group at the end of this year. The Chrysler group underwent a government-supported bankruptcy reorganization in 2009. It reported a net loss of $652 million last year. If Fiat increases its ownership of Chrysler to 51 per cent that would help the US government wind down its eight percent stake in the smallest of the US Big Three automakers. It is the second time this year that Fiat has increased its ownership in the US automaker. It was originally handed a 20-per cent stake in Chrysler as part of the company's 2009 bankruptcy reorganisation. In January the stake was increased to 25 per cent. The latest increase slightly reduces the stake of Chrysler's other owners. The United Auto Workers health trust, known as the Voluntary Employees' Beneficiary Association, remains the largest shareholder, with 59.2 per cent, followed by Fiat then the US Treasury's 8.6 per cent. The Canadian government holds 2.2 per cent. The union trust and governments intend to sell their stakes once Chrysler goes public in 2012.