MILAN, Dec 23 (AFP) - The Italian Fiat group can exercise from Monday a disputed option to sell 90 percent of its fragile car making subsidiary to US giant General Motors, after months of still-unresolved wrangling and threats of legal action.
However, the Fiat-owned Turin daily La Stampa said Sunday that "nothing is preventing the parties finding an amiable solution, even after January 24", indicating the Fiat Group was keen to avoid a protracted and costly courtroom battle to force GM to buy its debt-burdened subsidiary.
Under an agreement signed between the reluctant partners in 2000, Fiat can exercise its option to sell the loss-making Fiat Auto to GM from January 24. The option runs for five years.
For the US group, which already owns 10 percent of Fiat Auto, the option appeared to be sound business at the time, but since then Fiat Auto has suffered a financial crisis, running up debts of eight billion euros.
The two groups opened mediation talks in mid-December in a bid to avoid a courtroom confrontation. In theory, Fiat boss Sergio Marchionne and General Motors Chief Executive Richard Wagoner must meet in a neutral venue for mediation talks, but neither side has mentioned a meeting.
There were no public moves from either side over the weekend, but Italian press reports said negotiations between the two camps were expected to continue into next week.
Italian business daily Il Sole 24 Ore reported Sunday it was unable to confirm rumours of Marchionne's presence in Detroit, home of GM.
"But if a last-minute meeting between the two men can't be ruled out, it is very probable that the mediation period will be extended by joint agreement," the newspaper added.
On Thursday, Marchionne said he was "optimistic" on the outcome of the talks.
01/23/2005 12:33 GMT - AFP