UPDATE: Fiat Names Banks For Auto Unit Spinoff, Merger
21 Mai 2009 - 9:17PM
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 European operations of General Motor
Corp. (GM) to merge them with its own auto unit, FGA, 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.
Fiat said Wednesday it bid for European operations of GM, which
include Adam Opel AG in Germany and Vauxhall in the U.K. GM has put
its European operations up for sale to raise cash as it faces a
possible bankruptcy filing in the U.S.
Its move to name financial advisers before GM makes a decision
on its European operations shows Fiat plans to invest cash into
developing the new company, and therefore will not rely solely on
aid from the U.S. and German governments.
Fiat is not paying cash for Chrysler, and has not offered cash
for Opel; it will contribute management expertise from its own
successful turnaround and its fuel-efficient engines in payment. It
plans to raise cash in an upcoming public offering to use to invest
in the new company.
The other two offers for Opel, one from Magna International Inc.
(MGA) and one from RHJ International Ltd. (RHJI.BT), rely on
government financing. Magna has $1.3 billion in cash, net of
debt.
-By Jennifer Clark, Dow Jones Newswires; 39 02 58 21 9904;
jennifer.clark@dowjones.com