Fiat courts VC bids for tool arm

The Italian industrial firm has invited venture capital firms to submit bids for its Comau tooling business as it looks to cut its debt pile.

Fiat is in negotiations with a number of unspecified venture capital firms regarding the sale of its Comau tooling manufacturer and Teksid, its foundry business as it looks to complete a E3bn disposal programme.

The Financial Times reports that Fiat is seeking offers in excess of E900m for Comau, which it had originally planned to spin off via a stock market listing. The firm has sought offers from venture capitalists as a result of a lack of interest from trade buyers.

Fiat is struggling to overcome net debt of E6.6bn, a figure compounded by the firm’s first quarter net loss of E529m. The firm is also considering the sale of parts of Magneti Marelli. As yet there is no news on which venture capital firms are looking at any of the divisions that have been put up for sale.