Fiat has responded to widespread Italian newspaper speculation that a partner for its Fidis Retail Italia finance division is in the offing, issuing a statement that only confirms that evaluations are currently being made.

Italian newspaper La Repubblica reported earlier this week that four financial institutions had made firm bids to acquire 51 percent of Fiat Auto's Fidis division. The four potential partners were reported as being BNP Paribas, Credit Agricole, Societe Generale and Deutsche Bank. Fidis Retail Italia was the result of the spin-off of the retail financing activities of Fidis S.p.A., the financial services division of Fiat Auto, which took place in 2003. 51 percent of the company was sold at the time to a consortium made up of four major Italian banking groups: BancaIntesa, Capitalia, San Paolo–IMI and Unicredito Italiano. Fidis Retail Italia S.p.A. is non-bank financial institution registered by Bank of Italy according to art.113 of Testo Unico Bancario. It has over 9 billion euros under management and operates through its retail subsidiaries located in 12 European countries.

Fiat retained an option to repurchase the controlling stake it sold in 2003, and Fiat CEO Sergio Marchionne is now anxious to resolve this outstanding issue by drawing in an institutional long-term stakeholder who can bring their own strengths to the operation and allow Fiat to concentrate on selling cars.
 

The four mentioned banks are all reported to have tabled bids of around 1 billion euros which will actually allow Fiat to make a significant profit on the transaction. Mediobanca, who are currently negotiating with Fiat over the repurchase of a 29 pct stake it holds in Ferrari, has reportedly dropped out of the running, feeling that the expected price is too high.

Marchionne has publicly commented that he wishes to see a new stakeholder in place as soon as possible and the Italian newspapers have been full of fevered speculation in the last few days. To dampen the rumours Fiat issued a very brief statement in Turin yesterday. "With regard to rumours published on newspapers in the past few days, Fiat confirms that several evaluations are currently being studied to identify a sole partner for the Financial Services of Fiat Auto," the statement read, adding: "No decisions have however been finalized yet."