Report: Magneti Marelli Sale Talks Stalled over Price

Fiat Chrysler Automobiles NV is asking for more than €6 billion ($7 billion) for its Magneti Marelli car parts business from would-be buyer KKR & Co., sources tell Bloomberg News.

But KKR, which would merge the Italian company with Japan’s Calsonic Kansei Corp., argues that €5 billion is a more realistic price, according to the sources. They say the talks, extended twice already, could collapse over the price gap.

KKR argues that a lower value is justified because trade worries and softer profit forecasts by several carmakers have weakened the market. Bloomberg’s sources point out that Magneti Marelli would be worth less than €4 billion if it traded at the same earning ratio as French rival Faurecia SA.