Is Italy Probing Fiat’s Cash Position?

Italian securities regulator Consob is investigating the size and use of Fiat SpA's cash position, Il Messaggero reports.

The Rome-based newspaper, which does not cite its sources, doesn't elaborate on the alleged probe.

Fiat says it is not aware of any such probe. The company says it regularly receives requests from Consob for information. The watchdog group pressed Fiat hard in 2010-2011 for details of its investment plans in Italy.

But the company declares that "any insinuation" that it doesn't hold the cash listed in its financial statements is false.

The company reported total liquidity, including credit lines, of €22.7 billion on June 30, up from €21.4 billion on March 31. Marchionne has said he wants to maintain an "inordinate" level of liquidity as a cushion during Europe's downturn.