Fiat denies reports of capital increase talks

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Associated Press

Posted on December 14, 2012 at 10:04 AM

MILAN (AP) — Fiat has denied reports that it is talks with banks to raise capital to boost its ownership of U.S. automaker Chrysler LLC.

Fiat said in a statement Friday that "there is no specific project" and that it "believes there is no need for a capital increase."

Fiat and Chrysler CEO Sergio Marchionne conceded in October that investment plans for Italy deprive Fiat of the cash to buy the remaining stake in the U.S. automaker from the autoworkers' pension health trust.

Fiat has a 58.5 percent stake in Chrysler and has always planned to buy out the minority shareholder.

Fiat shares were down 2.27 percent to €3.61 ($4.72) after it posted a 13 percent drop in year-on-year registrations in November. The European market dropped 7 percent by comparison.

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