Newsgroup: it.economia.borsa
Titolo: Un tempo Fiat faceva le macchine...

Ora fa derivati!
Si vede che anche Fiat legge IEB...
Deals on wheels
Fiat: Fiat's core business should have been derivatives, not cars. As its
latest set of results shows, the Italian group's supposedly core auto unit
is still spluttering, with an operating loss of E840m last year. But if
Fiat's wheels aren't working, its deals certainly are. In spite of its
distress, Paolo Fresco, its much maligned former boss, managed to negotiate
three remarkable put options between 2000 and 2002. These are worth some
E3.3bn at current market prices.
Of Fiat's three options, one has already been cashed in. Its former partner,
General Motors, paid it E1.55bn to avoid potentially having to buy its auto
arm. The second option falls due by the end of March. At that time, the
Italian group will be able to sell its stake in Edison, the power group, to
Electricite de France for around E1.15bn. That same stake is currently worth
E780m at market values, so Fiat stands to make a E370m or so profit.
But Fiat hasn't just got one over on industrial allies. It has also managed
to wheedle a great deal from its banks. These lent it E3bn in 2002, and
agreed that if Fiat couldn't comfortably spare the cash to pay them back by
September 2005 they would take shares instead. The trouble, for the banks,
is that under the terms of the deal the new shares will be issued at the
average between the previous 6-month market value and E15.50. That means
that, if Fiat's shares didn't shift from their current E5.76, the banks
would pay E10.63 per share - or almost double the market price. In other
words, they would pay E3bn for something only worth E1.6bn. For Fiat, that
would translate into a profit of E1.4bn.
Tot the three up, and Fiat's clever deal-making could make it a E3.3bn
profit. That's enough to cover 4 years of the auto division's losses at the
current E840m run rate. Fresco may have been unable to sort out Fiat's car
problem. But he certainly provided it with a lifeline - or rather three.
   Context News
Fiat said that its net loss for 2004 was E1.5bn, down from the E1.9bn loss
it made in the previous year. The Italian car groups auto arm lost E840m at
the operating level, down from E1bn in 2003, but the groups other operations
made up for that, so Fiat was able to post a small operating profit of E22m.
At the ebit level, the group reported a E833m loss.
Fiat has received E1.6bn from General Motors to cancel an agreement it had
signed with the US group in 2000. Under the terms of this contract, GM could
potentially be forced to buy the 90% of Fiats auto business that it didnt
already own.
At the end of March, Fiat will be able to sell its 24.6% of Italenergia, the
holding company that controls power group Edison, to Electricite de France.
The option values Fiats stake at a floor price of E1.15bn.
In 2002, Fiat received an E3bn loan from a pool of banks. This comes due in
September 2005. Under the terms of the contract, Fiat can only repay the
loan in cash if this doesnt impair its credit rating or cause it to break
some covenants. Otherwise, the banks will take shares in Fiat in payment.
These will be issued at a price determined by a fixed formula: the average
of the shares market value in the previous six months and E15.50.
 
 
Author : Camilla Palladino
 
 
 
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Inviato via 
http://arianna.libero.it/usenet/

Niente da dire, la signora Palladino sa fare i conti.
Forse in futuro in pochi sottoscriveranno una put con FIAT...
M I
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