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UPDATE 1-Fiat holding mulls cap hike for Peugeot tie-report

Thu Jan 22, 2009 2:03am EST

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(Adds details, background, credit line report)

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MILAN, Jan 22 (Reuters) - Italy's Agnelli family is weighing a possible capital increase of about 2 billion euros ($2.58 billion) for car maker Fiat SpA (FIA.MI), La Repubblica newspaper said on Thursday.

The capital hike being considered by the Agnelli family's Exor holding would be aimed at keeping a significant stake in a merged company in case of an alliance with France's PSA Peugeot Citroen (PEUP.PA), it said.

The newspaper cited no sources for the story. A Fiat spokesman had no comment.

The Agnellis have just over 30 percent of Fiat through Exor. Fiat announced an alliance with U.S. automaker Chrysler LLC [CBS.UL] this week.

Il Sole 24 Ore business daily also reported Fiat has been working for a month to obtain a syndicated credit line of up to 5 billion euros.

Italian banks UniCredit SpA (CRDI.MI) and Intesa Sanpaolo (ISP.MI) are willing to subscribe a total of 1 billion euros to 1.5 billion euros of the loan, it said. ($1=.7752 euros) (Reporting by Ian Simpson and Nigel Tutt; Editing by Mike Nesbit)



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