Business Blog Posts

MILAN (Reuters) � Italian automaker Fiat (FIA.MI) is considering listing part of its sports car unit Ferrari to raise cash in order to increase its stake in U.S. carmaker Chrysler, Il Corriere della Sera said on Sunday.

Citing information gathered at Fiat's Turin headquarters Corriere said Fiat's main priority is to find liquidity to allow it to fund the acquisition of 51 percent of Chrysler and listing Ferrari could be the way of achieving this goal.

A Fiat spokesman denied the report.

"There are no plans for any Ferrari listing," he said.

Fiat, which owns 20 percent of U.S.-based Chrysler, is expected to increase its holding to 35 percent once it meets restructuring goals. It has an option to grow to 51 percent.

In a recent study Sanford C. Bernstein said it expected Fiat to raise its stake in Chrysler to 51 percent in 2011 or 2012.

According to Il Corriere, Fiat would keep a majority 51 percent stake in Ferrari which, it said, is worth $3.1 billion.

Fiat currently owns 85 percent of Ferrari. In September Fiat CEO Sergio Marchionne, who is also Chrysler CEO, said he wanted to return to an historic 90 percent level without however losing Abu Dhabi investment fund Mubadala which owns 5 percent.

(Reporting by Stephen Jewkes; Editing by Louise Heavens)

KOBE, Japan (Reuters) � Japan will ease monetary policy appropriately if necessary, while keeping an eye on the impact of the yen's rise on the economy, Bank of Japan Governor Masaaki Shirakawa said on Sunday.

Shirakawa, speaking at an event hosted by the Japan Society of Monetary Economics in Kobe, western Japan, also said the BOJ was watching the "downside risk" to the economy more closely.

He said the Japanese central bank had done the most aggressive easing in the world when looking at the size of its balance sheet in comparison with gross domestic product but that it did not mean he saw no need for further action.

"We'll respond (to the need of easing) timely and appropriately," Shirakawa told the seminar.

Tokyo intervened in the currency market on September 15 by selling yen for the first time in more than six years as the yen's surge to a 15-year high versus the dollar threatened to derail Japan's export-reliant recovery and worsen deflation.

The BOJ's next scheduled policy meeting is on October 4-5. Easing policy at this meeting cannot be ruled out, and options include increasing government bond purchases and expanding a cheap fund-supply tool, sources say.

(Reporting by Tetsushi Kajimoto; Editing by Nick Macfie)

HONG KONG (Reuters) � China's Sinochem Corp is in early talks with banks to finance its likely bid for all or part of Potash Corp of Canada (POT.TO), a newspaper reported on Saturday, in a sign that China is serious about derailing BHP Billiton Ltd's (BLT.L) $39 billion hostile bid.

Sinochem, which has hired Citigroup (C.N) and Deutsche Bank (DBKGn.DE) to explore options to foil BHP's bid, was not actively searching for cash, but it was entertaining loan proposals from global and Chinese banks, the South China Morning Post reported.

"We are talking to Sinochem about a big loan. They need to put financing in place, so that if they decide to make an offer, they can convince Potash's board they are good for the money," the newspaper quoted a managing director at a mainland bank.

The newspaper did not name the banker.

Last month, BHP launched a hostile $130-a-share offer for Potash (POT.N), the world's largest fertilizer maker. The Saskatoon, Saskatchewan-based company flatly rejected the bid as "grossly inadequate" and has filed a lawsuit against BHP in an attempt to stymie a takeover.

Interest in Potash is being fueled by an expected surge in fertilizer demand from China, India and other emerging economies due to rising food consumption.

Sinochem could not be reached for a comment immediately. BHP has received antitrust clearance from the U.S. Federal Trade Commission to proceed with its bid.

"We have approached Sinochem about lending very substantial amounts to support this potential deal. They are interested, but have made no firm commitments," the newspaper also quoted another unnamed banker as saying.

Potash's U.S.-listed shares gained 0.4 percent to close at $146.00 on Friday, representing a 12.3 percent premium to BHP (BHP.AX) offer price.

(Reporting by Denny Thomas; Editing by Nick Macfie)