Fiat rights offer a better deal for its banks 17 Feb 2003 Without news from GM and new management, Fiat will struggle to attract minority shareholders to a E2bn capital increase. But for Fiat's banks, underwriting the offering at a price close to market beats converting E3bn of debt at an inflated price.
Fiat’s banks agitate for update 10 Feb 2003 It s natural they are getting anxious about Fiat s turnaround: they will be asked to underwrite any cash call. If the plan is not credible, they ll be holding the baby. Here are the questions Fiat must answer later this month.
Fiat shouldn’t keep car side for sentimental reasons 29 Jan 2003 In the postGianni era, there may be a temptation to honour Agnelli's legacy by preserving Fiat Auto's independence. This would allow GM to wriggle off the hook, which would be a mistake.
Fiat’s founding family faces cash call 21 Jan 2003 Whatever revival plan Fiat chooses, it s likely to involve fundraising. But how will the Agnellis participate? Ifi and Ifil are strapped for cash and the family isn t keen on selling assets. Without some sacrifice, though, new investors may balk.
Fiat plans to split into two 9 Jan 2003 A selfadministered breakup of the troubled conglomerate makes industrial sense. It would also scupper rival breakup plans from outsiders. The bigger question is whether the numbers add up. To finance the plan, E7bn in new cash would be required. That's possible but not easy.
Colaninno kicks off Fiat charm campaign 8 Jan 2003 The exTelecom raider could bring Fiat two things it lacks: a credible management team and an industrial plan. And Fiat has some assets, and Fresco's 3 puts, that he can exploit. But make no mistake, Colaninno will come with strings attached.
Fiat’s banks win battle, not war 13 Dec 2002 They have for the time being seen off an attempt by Mediobanca and Berlusconi to carve up the group. But the banks haven't put in credible management or come up with a proper plan. Unless they do, the crisis will be back with a vengeance.
Ford credit rating two notches above junk 28 Oct 2002 The struggling carmaker is a microcosm of the economic and financial risks threatening US businesses. Ford looks dangerously reliant on selling assetbacked securities.