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article imageFiatChrysler could sell 95-year-old auto parts subsidiary

By Nathan Salant     Jul 19, 2015 in Business
London - Fiat Chrysler Automobiles could sell prized 95-year-old auto parts maker Magneti Marelli this year to raise money to increase its ownership stake, industry sources say.
FCA officials have denied interest in selling its highly prized Magneti Marelli unit, known for high tech and lighting innovations, but the company has received multi-billion dollar offers for the Italy-based parts maker, the sources said.
At least two U.S. private equity funds have offered to submit joint for the unit, Reuters said, but a recent offer of $2.7 billion was turned down as inadequate.
"Letters are piling up on Fiat's table," one of the sources told the Reuters news service.
"We expect Chief Executive (Sergio) Marchionne to react to these approaches sooner rather than later," the source said.
U.S.-based FCA spokesman Gualberto Ranieri said Magneti Marelli was not for sale.
But FiatChrysler is known to be trying to raise money to help pay off debt and to raise its stake in its Chrysler unit, and some sources said had told interested bidders that it was considering a deal.
But the carmaker, the world's seventh-largest, was thought to be tied up with dealings involving its Ferrari unit and would not be available for further deal making until October, Reuters said.
Magneti Marelli supplies parts to all major carmakers in Europe, the Americas and Asia, Reuters said.
The subsidiary has facilities in 19 countries and employs more than 38,000 workers.
Magneti Marelli was founded in 1919 with a factory near Milan.
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