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Fiat soars on raider rescue hope
MILAN, Italy -- Fiat's stock soared after reports that entrepreneur Roberto Colaninno may have put together a rescue plan for the loss-making Italian industrial group. Colaninno has presented an eight-billion euro ($8.4 billion) plan to the Agnellis family -- which has controlled Fiat for more than a century -- as well as creditor banks and the government, according to the La Repubblica newspaper. He masterminded the 30-billion euro takeover of Telecom Italia in 1999 but was later ousted by rivals. Fiat's stock, which hit a 20-year low on Monday, rose more than 6 percent, or 0.47 euros, to 8.23 euros in midday Milan trading on Thursday. Umberto Agnelli, a member of the controlling family which holds about 30 percent of Fiat stock, told Italian news agency Ansa that Fiat was sticking with its existing restructuring program, which involves asset sales and more than 8,000 layoffs. "I appreciate the interest that has been shown but I would like to recall once again that there is only one plan approved by the board and agreed with the creditor banks and the government," Ansa quoted Agnelli as saying. "I confirm the full support of the shareholders to the Fiat managers who are involved in the steady implementation of this plan," he said. "The absolute priority for Fiat Auto today is to work calmly to advance the tough industrial program underway." Colaninno plans to pump 8 billion euros into Fiat's battered car division, Fiat Auto, making him a shareholder in the group on a level with the Agnelli family. He would contribute 1 billion euros of his own cash, with the remainder to be raised by sales of key assets and possibly some money from Fiat's partner, General Motors (GM), in return for Fiat dropping its option to sell the rest of ailing Fiat Auto to GM from next year.
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