No capital increase in sight for Exor. As reported today during the shareholders' meeting, the holding company that controls Fiat has liquidity of 925 million euros. “Recapitalization would not be appropriate, because Exor shares trade at a discount to their net asset value – said the chairman, John Elkann -. We are very cautious in the use of leverage. We have various sources of capital and funding. Accessing new capital is not functional for shareholders ".
The CEO of Fiat, Sergio Marchionne, said in early April that Fiat will need a capital increase in the medium term, after the acquisition of 41,5% of Chrysler in the hands of the fund of the US union, Veba. This morning however Bloomberg spoke of a $10 billion loan at the Lingotto by a group of banks to complete the acquisition of the American company and refinance the debts of both companies.
Fiat is reportedly discussing the transaction with Bank of America, Deutsche Bank, BNP Paribas and Goldman Sachs. The goal is to complete the operation by the end of the summer, but much will depend on the Delaware court, which will have to decide by the end of July on the dispute relating to the price of the Fiat purchase option on the share held by Veba.
“We have to go on – Elkann said again during the meeting -. The joint venture to emerge from the Fiat-Chrysler merger will be large in scale and strong. On the part of Exor there is absolute conviction to go ahead and to ensure that Fiat and Chrysler have an ever closer future together. Today, however, it is very premature to say how it will happen and what will be needed”.
As for the merger between Fiat Industrial and Cnh, “there is a series of fulfilments to carry out – continued the number of Exor -. We believe that between July 4th and September XNUMXst this reality should be born. No problems on the horizon”.
