AM Online

Fiat to woo investors

Fiat is expected to ask investors to stump up fresh cash to revive its Fiat Auto division. But fund managers say that they must set up a hard-hitting industrial plan to attract investors.

Fiat is reported to have agreed with its top creditor banks to a capital increase of up to 3bn euros, not far off its current market capitalisation of 4.7bn.

Fiat will have to push forward asset sales in order to attract investors.

Mario Spreafico, a fund manager at Banknord says: "The possible capital increase could get interesting if it is linked to a concrete industrial plan. How much money they are going to be able to get will depend on what assets they sell and for how much.”

Fiat said asset sales were going ahead as planned but made no mention of how it could sell aviation arm Fiat Avio and insurer Toro. These could raise as much as 4bn euros.

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