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Article: Fiat, GM renegotiate terms of put option.(News)
- Article from:
- Automotive News Europe
- Article date:
- February 10, 2003
CopyrightCOPYRIGHT 2003 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Luca Ciferri Automotive News Europe
Fiat and General Motors have begun renegotiating the put option that gives Fiat the right to sell its remaining stake in Fiat Auto to GM.
The partners are also trying to agree on a plan for recapitalizing Fiat Auto, according to sources close to the negotiations.
The partners are discussing:
* A change in the put option, which allows Fiat to force GM to buy the 80 percent of Fiat Auto it doesn't own beginning in January 2004.
* GM's participation in a planned [euro]5 billion recapitalization of Fiat Auto, which lost [euro]1.44 billion in 2001 and over [euro]2 billion in 2002.
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