FIAT EYES OTHER POTENTIAL BUYERS?
Less than €6b bid by KKR & Co viewed as too low, say sources
FIAT Chrysler Automobiles NV will evaluate other potential buyers for its Magneti Marelli parts unit because the carmaker views a bid made by KKR & Co as too low, people familiar with the discussion said.
KKR offered less than the €6 billion (RM28.92 billion) minimum valuation Fiat sought, which ended the exclusivity of the talks, said the people.
The Italian carmaker can now evaluate other inquiries received for the unit while it prepares to eventually separate the Milanbased company and distribute shares to investors, another viable way to extract value and simplify the group’s structure.
The United States fund wanted to pay around €5 billion for Marelli because conditions for Fiat’s alternative plan of spinning off the division have deteriorated, people familiar with the matter said recently.
Talks with KKR, which would merge Marelli with its Japanese parts maker Calsonic Kansei, could still revive if the private equity firm raises its valuation, the people said. Fiat’s board in April approved the plan to spin off the car-parts unit.
Fiat and KKR declined to comment.
The sale of Marelli would become one of the first major milestones for Fiat Chrysler chief executive officer Mike Manley, who took over on July 21, days before predecessor Sergio Marchionne died.
Marchionne, who had favoured a separation of the business by distributing shares to investors, had said Fiat was open to changing its mind for a “big check”.
The decision on Marelli will also be the first merger and acquisition decision to be taken by chairman John Elkann, who had been working with Marchionne for over 14 years, after the deal maestro passed away.