Fiat to Double Stake in RCS to 20.1 Percent
By IVCPOST Staff Reporter
Jun 28, 2013 09:37 PM EDT
Regions
Italian truck and tractor major Fiat Industrial and its U.S.-based full line agricultural and construction equipment industries firm CNH Global NV have agreed to merge, whereby Fiat Industrial will acquire 12 percent in CNH that it had not owned already. (Photo : Fiat)
Fiat, an Italian carmaker said on Friday that it will increase its stake in RCS Mediagroup. The increase in the company's stake will rise almost double for the influentical Italian daily Corriere della Sera to 20.1%. This will transpire after a capital increase that will end by next week.
Fiat also has major control in Turin newspaper La Stampa. After its proposed increase, it would likely become the largest shareholder in RCS. Other investors have been selling rights. This would mean that their stakes be diluted by the cash call.
In a statement, the Italian car manufacturer said that it would assume the Eur400 million capital increases after the rise in its stake. Currently, the company holds 10.5% of RCS.
In January 2009, Fiat and Chrysler announced their plan to form a global alliance. In May 2012, Fiat formed an alliance with Mazda Corp to develop and manufacture new rear wheel drive.
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