Fiat to reduce Italenergia position

Fiat, 38 per cent owners of Italenergia, is today expected to sell part of its stake in an attempt to cut debts at the troubled industrial conglomerate. The sale is expected to raise EURO500m ($471m) with Fiat likely to sell about 15 per cent to three banks – Sanpaolo IMI, IntesaBci and Banca di Roma. The deal is being negotiated ahead of Italenergia’s shareholders meeting today.

The sale will reawaken concerns that Electricite de France will increase its 18 per cent stake and try to gain control later this year by offering to guarantee a proposed Euro1bn convertible bond issue in exchange for an option on part of the convertible debt.

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