Fiat SpA plans to raise 3 billion EUR from disposals, 50% above previous targets, as part of a ‘sweeping debt reduction programme’, The Financial Times reports.
Fiat chief executive Paolo Cantarella is due to meet institutional shareholders in London today to discuss the restructuring, which aims to halve the group’s EUR 6 billion net debt by the end of this year and cut it further in 2003, the FT said.
Last month Fiat announced that it will sell off assets and that to prop up Fiat Auto, Fiat SpA plans to raise EUR 4.49 billion by selling several group companies over the next two years – including all of Magneti Marelli.
The group will sell 51 percent of Comau-PICO, its production equipment maker.
Jack Welch, the 65-year-old former head of American conglomerate General Electric, will have a major role in Fiat’s restructuring programme.