The Wall Street Journal is reporting that Italy’s Fiat will take a stake in Chrysler that may lead to a takeover — as soon as today.

Under terms of a pact that is being hammered out, Fiat is likely to take a 35% stake in Chrysler by the middle of this year. It would have the option of increasing that to as much as 55%, these people said.

Rather than throw cash into “Big Bob” Nardelii’s money pit, Fiat would pay for the retooling of one of Chrysler’s plants and begin to sell Fiats in the United States. They would also help Chrysler with the technology to produce smaller, more fuel efficient cars.

Fiat Nears Stake in Chrysler That Could Lead to Takeover [WSJ]

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