Latest from Fiat SpA, 2/2/00

[Neil Smith <neiltbag@domain.elided>]

Following hot on the heels of the article from the 28th that was
posted yesterday (apologies if anyone else has already posted
this):

MILAN -- Fiat SpA, Italy's largest industrial company, and other
companies linked to the Agnelli family soared amid talk the
company is getting set to merge with a foreign partner such as
Germany's DaimlerChrysler AG. 

Fiat common stock gained as much as 10 percent to $32.02 and was
suspended from trading. 

The company's savings and preferred shares also rose more than
the permitted 10 percent and were suspended. Ifil SpA and IFI
SpA, the two companies through which the Agnelli family controls
the carmaker, also were suspended after gaining more than 10
percent. 

Traders said the talk was that the company may be preparing a
conversion of its savings and preferred stock to common stock as
a first step toward a merger with a foreign partner. In a merger
IFI and Ifil, which together own more than 30 percent of Fiat's
shares, would stand to gain from any premium paid. 

"These are recurring rumors; they go around regularly every few
months," said James Kettner, a trader at Eptasim in Milan. "This
time, though, it feels like it may be different." 

Fiat said it had no comment on the speculation. 

The world's sixth-largest carmaker has been the subject of
speculation for more than a year that it's seeking a partnership
with a larger rival because it isn't big enough to compete on
global markets alone.

Neil
'87 Milano Oro
San Francisco

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