Posted on Monday, 4th October 2010 by Jesse Walker
MILAN -(Dow Jones)- Of the eight banks that worked on a credit facility for Fiat SpA (F.MI) this year, only UniCredit SpA (UCG.MI) and Intesa Sanpaolo SpA (ISP.MI) remain to help the Italian group split itself into two companies, according to a person familiar with the situation.
“It’s just UniCredit and Intesa,” the person told Dow Jones Newswires Tuesday on condition of anonymity.
The two Italian banks worked with others including Citigroup Inc. (C) and the Royal Bank of Scotland Group PLC (RBS) to provide Fiat with a line of credit of up to EUR4 billion in July.
The facility will be used for general corporate purposes and the working capital needs of Fiat Industrial SpA, one of the two companies to be created after the group’s break-up, which comes into effect Jan. 1, 2011.
Last Thursday, Fiat Industrial filed a request to list itself on the Milan stock exchange, as expected.
It will comprise Iveco trucks, CNH (CNH) tractors and combines, and the relevant powertrain activities.
The other company, which will keep Fiat’s listing in Milan, will focus on passenger vehicles with brands such as Fiat and Alfa Romeo. It will also retain the minority stake in Chrysler Group LLC.
The break-up is part of a radical restructuring designed to allow the two new companies to pursue their own course in their unrelated businesses. The company dedicated to cars, for example, will be able to focus better on developing its partnership with Chrysler.
Fiat Chief Executive Sergio Marchionne has said he expected Fiat Industrial’s shares to start trading on Jan. 3 after getting the necessary regulatory approvals by the end of November.
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Tags: Intesa, Intesa Split
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