Fiat Names Banks For Auto Unit Spinoff, Merger
May 21 2009 - 1:01PM
Dow Jones News
Fiat SpA (F.MI) said Thursday it has named Goldman Sachs Group
Inc. (GS), Intesa Sanpaolo SpA (ISP.MI) and UniCredit SpA (UCG.MI)
to help it spin off auto activities into a new company that will be
listed on "major European financial markets."
Fiat is keen to acquire General Motor Corp.'s (GM) GM Europe to
merge it with its own auto unit and with Chrysler LLC, in a bold
move to tap government funds to finance a slim-down of the auto
industry's chronic overcapacity through a horizontal merger between
similar, mass-market brands.
"Fiat is pleased to announce that is has secured the support of
three financial institutions in its current efforts to act as
consolidator in the European car sector with the ultimate objective
of carving out these operations from the Group as a Newco," the
company said in a statement.
The three banks "will guide Fiat in all the required operations
in the months to come," Fiat said.
-By Jennifer Clark, Dow Jones Newswires; 39 02 58 21 9904;
jennifer.clark@dowjones.com