UPDATE 1-Fiat could seek merger, listing with GM Europe

Sun May 3, 2009 9:38pm BST
 
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* Combined company would have yearly rev of 80 bln euros

* Fiat CEO meets German ministers on Monday

* German minister: Fiat must present long-term Opel plan (Releads with Fiat statement; adds second byline)

By Ian Simpson and Erik Kirschbaum

MILAN/BERLIN, May 3 (Reuters) - Italy's Fiat SpA (FIA.MI) could seek a merger of its auto group with General Motors Corp's GM.N Europe unit, then spin off the combined company and list it, Fiat said on Sunday.

Fiat Chief Executive Sergio Marchionne, fresh from a partnership with ailing U.S. automaker Chrysler, will meet German government ministers on Monday to discuss a bid for German car maker Opel, part of GM Europe.

Fiat's board met on Sunday to review the Chrysler deal and back Marchionne in weighing a potential merger of Fiat's auto group, including "the Chrysler interest," with GM Europe into a new company, Fiat said in a statement. [ID:nBIA033a4]

"As part of this process, the Group would evaluate several corporate structures, including the potential spinoff of Fiat Group Automobiles and the subsequent listing of a new company which combines those activities with those of General Motors Europe," it said.

A combined company would have yearly revenue of about 80 billion euros ($106.3 billion), Fiat said.  Continued...

 

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