Fiat: No Plans to Raise Capital for Chrysler Purchase

Fiat SpA has rebutted an Italian newspaper report that it is planning to obtain fresh capital to buy the 41.5% of Chrysler Group that it doesn't already own. Fiat also stated it has no need of a capital increase.

Il Messaggero, which doesn't cite its sources, says the Italian company is consulting with Bank of America, Goldman Sachs, Morgan Stanley and UniCredit Group about its options for raising €1 billion-€2 billion ($1.3 billion-$2.6 billon).

Fiat-Chrysler CEO Sergio Marchionne declared last month that Fiat has enough cash to carry out its European restructuring and the Chrysler acquisition. Fiat had €9.8 billion ($12.7 billion) in liquidity on Sept. 30.

Bernstein Research estimates the Chrysler stake might cost about €3 billion ($3.9 billion).

Fiat and the union-run retiree healthcare trust that owns the 41.5% stake are locked in a legal battle about how much Chrysler share are worth. The trust wants $340 million for a 3% stake more than twice what Fiat is offering.

Credit Suisse predicts the dispute will delay any acquisition until late next year.