The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Generali Buys Remaoning 40% Of Europ Assistance from Fiat

MILAN, Sept 30, 2002; Reuters has reported that Italian insurer Generali has agreed to buy the remainder of Europ Assistance Holding for 124 million euros from loss-making Fiat as the automaker sells assets to cut debt, the groups said on Monday.

Fiat will realise a gain of at least 80 million euros on the sale, the latest in a series, of its 40 percent stake in the roadside medical assistance company to Generali, which already holds 60 percent, the two groups said in a statement.

"With this operation Fiat takes an important step in its programme of selling non-strategic assets," the statement said.

Fiat, Italy's leading industrial group, is struggling to contain debts after its core auto unit suffered a 19 percent slump in car sales in the second quarter and posted an operating loss of 394 million euros, pushing group net losses to 34 million euros.

As part of its plan to return to profit, Fiat is aiming to raise 3.2 billion euros through the sale of noncore assets as it tries to slash net debt to 3 billion euros by December from 5.8 billion euros at the end of June.

Generali, which plans to purchase the stake via Generali France Holding, plans to develop the Europ Assistance business with the help of partners from different sectors.

In August, Fiat sold the aluminium unit of its Tekside casting subsidiary for a net gain of 290 million euros, and at the end of June it sold 34 percent of its Ferrari racing car unit for 775.2 million euros.