Fiat approves bond issuance for up to 4 bln euros, board OKs merger

MILAN, June 15 Sun Jun 15, 2014 1:35pm EDT

MILAN, June 15 (Reuters) - Italian carmaker Fiat said on Sunday its board had approved issuing one or more bonds for a total of up to 4 billion euros ($5.45 billion) - or equivalent amount in other currencies - to be placed with institutional investors.

In a statement, Fiat said the bonds may be issued in one or more tranches, also through controlled companies, on or before Dec. 31, 2015, subject to market conditions.

"Such issuances are designed to manage the consolidated debt of the group especially in view of some of the older bond issuances coming due between now and the end of 2015," Fiat said.

It did not provide more details.

In a separate statement, the company said its board had approved the merger plan with Chrysler, already announced in January.

The merger is subject to approval of a shareholder meeting which will be convened in the third quarter of the year, Fiat said without giving a date.

The transaction is expected to be completed by year-end.

($1 = 0.7345 Euros) (Reporting by Silvia Aloisi)

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