Calsonic Lines Up $5.9 Billion Bid for Magneti Marelli

Japanese parts supplier Calsonic Kansei has arranged about €5 billion ($5.9 billion) in bank funding for its bid to acquire Fiat Chrysler Automobile’s Magneti Marelli parts affiliate, sources tell Reuters.

Calsonic is the former Nissan Motor Corp. affiliate acquired two years ago by KKR & Co. The parts supplier has made a tentative bid to buy the unit for €5.8 billion, pending the result of a due diligence review, the sources say.

Earlier this month Bloomberg News reported that FCA is demanding more than €6 billion for the business. KKR has argued that a lower price is more realistic because of an expected slow decline in auto industry volume and profits.

One of Reuters’ sources says FCA or the Agnelli family, which controls the carmaker, could help cover the price gap by taking an equity stake in a Calsonic-Marelli merger.