The worlds best may be up for sell:
By Marco Bertacche and Francesca Cinelli
April 22 (Bloomberg) -- Fiat SpA may have to sell its CNH Global NV agricultural and construction-equipment unit to fund a partnership with Chrysler LLC, Sanford C. Bernstein Ltd. said.
“Given Fiat’s constrained fund-raising options we are growing increasingly concerned that Fiat may also need to sell its jewel assets to support auto industry expansion,” Bernstein analysts led by Max Warburton wrote in a note sent to clients today. A Fiat official in Turin, Italy, declined to comment.
Auburn Hills, Michigan-based Chrysler, surviving with $4 billion in U.S. loans, has until April 30 to extinguish most of its debt, get a new U.S. labor agreement and form an alliance with Fiat to qualify for as much as $6 billion in additional loans. Fiat Chief Executive Officer Sergio Marchionne has said his company won’t make any cash payment for a stake in the unprofitable U.S. automaker.
Fiat gets almost two thirds of its operating income from the agricultural and truck businesses. A sale of CNH, the world’s second-biggest maker of tractors and combine harvesters, could fetch as much as 8 billion euros ($10.4 billion), Bernstein said. Fiat may also be forced to sell truckmaker Iveco SpA, which could be worth as much as 5 billion euros, the analysts said. CNH and Iveco disposals are “the only remaining source of funds,” Warburton said.
Fiat rose 2.7 percent to 7.48 euros in Milan trading. The stock has surged 63 percent this year, valuing the company at 8.95 billion euros.
By Marco Bertacche and Francesca Cinelli
April 22 (Bloomberg) -- Fiat SpA may have to sell its CNH Global NV agricultural and construction-equipment unit to fund a partnership with Chrysler LLC, Sanford C. Bernstein Ltd. said.
“Given Fiat’s constrained fund-raising options we are growing increasingly concerned that Fiat may also need to sell its jewel assets to support auto industry expansion,” Bernstein analysts led by Max Warburton wrote in a note sent to clients today. A Fiat official in Turin, Italy, declined to comment.
Auburn Hills, Michigan-based Chrysler, surviving with $4 billion in U.S. loans, has until April 30 to extinguish most of its debt, get a new U.S. labor agreement and form an alliance with Fiat to qualify for as much as $6 billion in additional loans. Fiat Chief Executive Officer Sergio Marchionne has said his company won’t make any cash payment for a stake in the unprofitable U.S. automaker.
Fiat gets almost two thirds of its operating income from the agricultural and truck businesses. A sale of CNH, the world’s second-biggest maker of tractors and combine harvesters, could fetch as much as 8 billion euros ($10.4 billion), Bernstein said. Fiat may also be forced to sell truckmaker Iveco SpA, which could be worth as much as 5 billion euros, the analysts said. CNH and Iveco disposals are “the only remaining source of funds,” Warburton said.
Fiat rose 2.7 percent to 7.48 euros in Milan trading. The stock has surged 63 percent this year, valuing the company at 8.95 billion euros.