Report: FCA May Sell Magneti Marelli Unit

Fiat Chrysler Automobiles NV is pondering a plan to sell parts maker Magneti Marelli SpA, sources tell Reuters.

At least two private equity firms in the U.S. each hopes to partner with multiple suppliers on a joint bid, according to the sources. They say the buyers would gain full control of the company, then split it up among the partners according to their areas of expertise.

The sources point out the unit's lighting business, worth some €2 billion, could be spun off as an independent company.

FCA is demanding an offer of at least €3 billion after rejecting a €2.5 billion bid last month, the report says. Analysts note that a Magneti Marelli sale would help FCA pay down debt and fund its ambitious €48 billion product development program.

Magneti Marelli generates some €8 billion in annual revenue selling components to most major carmakers. FCA hasn't decided on a sale and isn't likely to act on an offer until after it launches a planned initial public offering for its Ferrari SpA supercar unit in October, Reuters' sources say.