General Motors said it had no comment on a report saying it plans to double its stake in Fiat SpA’s money-losing car unit to 40%, Dow Jones reported.
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Dow Jones said that Italian newspaper Milano Finanza said on Thursday that the deal would raise up to €2.5 billion for Fiat Auto while Fiat SpA would maintain its 40% stake in the car unit, with the remaining 20% open to new investors.
GM general director of finance and international communications Toni Simonetti told Dow Jones the story was “very, very speculative.” GM has said it will publicly announce any deals it reaches with Fiat, but has not confirmed whether negotiations are ongoing with the company, Dow Jones said.
Dow Jones noted that GM currently owns 20% of Fiat shares. Under an agreement struck between the two companies, Fiat has the right to force GM to buy the remaining 80% of the company in 2004 at a price to be determined then.
