VENICE, Italy June 8 (Reuters) - Italian carmaker Fiat Chief Executive Sergio Marchionne said that Fiat’s controlling shareholder Exor’s commitment to taking up its stake in a possible capital increase is positive.
Exor Chairman John Elkann said recently that Fiat’s planned merger with Chrysler may include a capital increase, and he was quoted as saying Exor would use the total of between 1.2 billion and 1.3 billion euros already on its balance sheet to keep its grip on the future merged carmaker.
Asked to comment, Marchionne said “I see this is very positive.”
Marchionne said on April 9 that Fiat may need a capital increase in the medium to long term.
It plans to buy up the rest of U.S. unit Chrysler and then merge the two companies as soon as possible, Marchionne reiterated on Friday.
Fiat may need between 2 billion euros ($2.62 billion) and 4 billion euros in fresh capital, said Morgan Stanley in a research report last week. (Reporting by Jennifer Clark, editing by Stephen Jewkes)