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Alfa Romeo OKs Takeover by Fiat, Rejects Ford Bid

November 06, 1986|Associated Press

ROME — The Italian state-controlled holding company Finmeccanica announced today that it has accepted Fiat's takeover bid for Alfa Romeo, rejecting a rival offer from the Ford Motor Co.

Final approval is up to the government, which is expected to take up the case on Friday.

Ford's offer would have preserved Alfa's independence, given Alfa access to Ford's 10,500-outlet international sales network and given Alfa the benefit of Ford's manufacturing experience, Alexander J. Trotman, president of Ford of Europe, said in Brentwood, England.

Fiat, Italy's largest auto maker and private employer, made a bid of about 8 trillion lire, or $5.7 billion, to rescue Alfa Romeo, Italy's prestigious but debt-ridden state-owned sports car maker. Under the plan, Fiat will merge Alfa with its own sporty Lancia line.

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