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UPDATE 1-Agco interested in Fiat's CNH unit - CEO in paper

Published 12/08/2010, 06:16 AM
Updated 12/08/2010, 06:20 AM

* Agco CEO says met Fiat CEO 10 days ago, no result

* Agco CEO says not clear Fiat wants to sell

* Fiat shares up 3.5 percent, hit 30-month high

(Adds shares, trader comment, Fiat no comment)

MILAN, Dec 8 (Reuters) - U.S. farm equipment maker Agco Corp is interested in Italian group Fiat's CNH Global unit, Agco's head said in an interview published on Wednesday, helping Fiat shares to a 30-month high.

Chairman and chief executive Martin Richenhagen told business newspaper MF he had met Fiat chief executive Sergio Marchionne 10 days ago but without any result.

"Marchionne knows where to find me and has my telephone number. And he knows we are interested in CNH," he said.

Richenhagen said it was unclear whether Fiat wanted to sell CNH, the maker of Case and New Holland brands of farm and earthmoving equipment. Fiat owns 89 percent of CNH which has a market valuation of $10.7 billion.

"Marchionne still does not seem ready to sell, but he could change his mind," Richenhagen said.

A Fiat spokesman would not comment.

Richenhagen said Fiat could be waiting to see results from Chrysler, the U.S. automaker in which it holds 20 percent, before thinking about selling CNH or truck unit Iveco.

Agco, whose brands also include Massey Ferguson, is moving ahead on a possible CNH merger by studying antitrust issues and on financing "to understand who could accompany us in a similar operation", Richenhagen said.

Fiat, Europe's number six carmaker by market share, is breaking off its auto business from its industrial activities, including CNH, at the start of 2011. Fiat Industrial shares will start trading next month.

Fiat shares hit their highest price since May 2008. They were 3.5 percent firmer at 14.54 euros at 1110 GMT, with a European autos index down 0.6 percent.

Shares in Exor SpA, the Agnelli family holding company that has a majority stake in Fiat, hit a record high and were up 1.9 percent at 22.99 euros.

A trader said: "In the absence of news, Fiat is being bought on these Agco comments. But Fiat is also being helped by Fiat Industrial's inclusion in the (Milan blue-chip) FTSE MIB index starting Jan. 3."

Fiat said in September it was looking at cooperation opportunities after a newspaper reported German rival Daimler was interested in its industrial arm.

Richenhagen said Agco was interested in organic growth but was ready for small and mid-sized acquisitions where needed.

He forecast revenue growth of 5-10 percent in Europe next year and U.S. growth of 5 percent this year and next. He estimated growth in Brazil at 25 percent this year and 10 percent in 2011. (Reporting by Ian Simpson and Maria Pia Quaglia; Editing by Hans Peters and Dan Lalor)

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