Fiat shares rise about 3% with the market eyeing Chrysler

MILAN, May 27 (Reuters)-Italian automaker Fiat's shares rose in trading session, on Monday, after a press information that the company was in talks with banks to ensure the financing of the purchase of Chrysler's North American unit.
"The news that (the Chief Executive of Fiat, Sergio) Marchionne could be in talks with banks to close the financing for the purchase of Chrysler ... is causing the shares to rise," said market strategist IG, Vincenzo Longo, in Milan. "The market thinks the story is heating up."
The Wall Street Journal had reported on Saturday that the value of the agreements caused by purchase of Chrysler and the subsequent listing on the New York Stock Exchange could add 20 billion dollars.
"The newspaper quoted, maybe erroneously, a value of more than 20 billion dollars after the merger", said one operator. "If this value is correct ... the value of the IPO would be much larger than the current analysts ' assessments."
The total market capitalization of Fiat is currently 6.7 billion euros, or $ 8.4 billion.
At 07:53 (GMT), shares of the company rose 2.95 percent.
(Article Francesca, Stefano Landini Rebaudo and Jennifer Clark)