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UPDATE 1-Exor aims to stay top investor in Fiat/Chrysler

Published 04/28/2011, 10:32 AM
Updated 04/28/2011, 10:36 AM
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* Exor to stay key investor also after Fiat/Chrysler merger

* Exor does not rule out diluting stake in new company

* No decision yet on timing of expected Fiat/Chrysler merger (Adds quotes, background, shares)

By Gianni Montani

TURIN, Italy, April 28 (Reuters) - The Agnelli family holding Exor intends to remain the leading investor in Fiat after the Italian carmaker merges with U.S. affiliate Chrysler, Exor's chief executive said on Thursday.

Fiat is planning to take a majority stake in Chrysler and said this month it intended to pay $1.27 billion euros for a further 16 percent to take its holding to 46 percent as part of a rescue of the No. 3 U.S. vehicle maker. [ID:nLDE73K174

"Certainly we will remain the leading shareholder in the new company," Exor Chief Executive and Agnelli family scion John Elkann said. "We want to participate in the growth project," he added.

Elkann did not, however, rule out cutting the stake in the merged company below the current 30.4 percent stake Exor owns in Fiat.

"If opportunities arise that entail a dilution, we will look at them, but we certainly don't want to dilute our stake," the manager said at the end of an Exor shareholder meeting.

Asked about the timing of a Fiat/Chrysler merger, he said no decision had been taken, and "we will take a step at a time".

On Thursday, Chrysler Group LLC announced a refinancing transaction to repay loans from the U.S. Department of the Treasury, and from the Canadian Federal and Ontario governments.

Chrysler intends to refinance more than $7 billion in government loans from its 2009 bailout.

Elkann, who is also chairman at Fiat, ruled out any asset sales for Fiat Industrial, the truck and tractor arm that the carmaker spun off last January.

At 1349 GMT, Exor shares were up 0.54 percent at 24.1 euros and Fiat was up 1.84 percent at 7.21 euros. The STOXX Europe 600 auto index was up 0.62 percent. (Writing by Nigel Tutt; Editing by Will Waterman)

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