Toro in the ring

24 March 2003 By Rob Cox Follow @rob1cox

Given Fiat s obvious need for cash, the sale is an achievement. CEO Morchio s guntothehead auctioneering style surely played a role. But fewer bidders and government meddling suggest he needs a lighter touch to save the sale of Fiat Avio.

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Fiat sold insurance company Toro for E2.4bn to publishing group DeAgostini. The privately held Italian group beat rival bids from Unipol and Groupama, both insurers.

Fiat has made other disposals including onethird ownership of Ferrari and a 5.5% stake in General Motors in an effort to reduce debt. GM, which owns 20% of Fiat Auto, can be forced to acquire the rest of Fiat beginning next year under a "put" option.

Fiat is seeking to raise up to E4bn in asset disposals by July. Aeronautics group FiatAvio is expected to be sold for E1.5bn within the next two weeks.

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