FIAT MAY ISSUE BOND FOR LIBYAN STAKE, PAPER SAYS
Fiat Spa <FIAT.MI> is considering
issuing a eurobond of up to 384 mln dlrs, convertible or with
warrants attached for exercise into its shares still with banks
after the placement of the Libyan stake last autumn, the
financial daily Handelsblatt reported, quoting bourse sources.
    The newspaper gave no other details. But dealers said
shares of Deutsche Bank AG <DBKG.F> had been strong in recent
days, partly on hopes that the issue would allow the bank to
place its Fiat quota with investors at a reasonable price.
    Deutsche was lead underwriter for the 2.13 billion dlr Fiat
placement, announced on September 23.
    In Milan, a Fiat spokesman had no comment on the reports.
    A Deutsche Bank spokesman here said he had no knowledge of
a possible equity-linked Fiat bond. But German banking sources
said concern the bank had to take a hefty writedown for its
unplaced Fiat stock had weighed heavily on its share price.
    Milan share dealers also said Fiat stock had been under
pressure since the placement. Ordinary shares rose 20 lire to
12,880 today, but were well down from 16,600 on September 23.
    Sources close to Italian state-owned investment bank IMI
said earlier this month that a convertible issue was being
considered, but gave no details of the amount involved.
 REUTER
