Fiat talking to banks on possible capital increase - source

MILAN Fri Dec 14, 2012 4:21am EST

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MILAN Dec 14 (Reuters) - Italian car maker Fiat is in talks with several banks on a possible capital increase to raise its stake in U.S. unit Chrysler, and a decision could come very soon, a person close to the matter said on Friday.

Fiat is mulling a 1-2 billion euro ($1.3-$2.6 billion) capital increase next year to buy out the remaining 41.5 percent of Chrysler, Il Messaggero reported earlier on Friday.

The paper said Fiat's talks with UniCredit, Morgan Stanley, Bank of America and Goldman Sachs on the possible cash call were at an informal stage and no decision had been taken.

Fiat declined to comment.

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