Reuters scores major beat as Fiat-Chrysler special report stirs up political storm in Italy
03.25.2011
The Reuters Special Report on Sergio Marchionnes plans for the future Fiat-Chrysler group sparked angry reactions from political parties and trade unions as it suggested Italys biggest industrial group was mulling moving its headquarters to America and gave Marchionnes valuation for a Ferrari IPO. Leading opposition parties Partito Democratico, Italia dei Valori. Communist Refoundation Party and main trade union Fiom all issued statements quoting the Reuters report and urging Silvio Berlusconis centre-right government to act against the possible move. The report ran prominently on all Italian print and TV media and some major international competitors, from Rai and Sky to Corriere della Sera, Il Sole 24 Ore, Repubblica and others. The editor-in-chief of Italian news agency TM News called the Milan Reuters office asking for permission to quote the report. Marchionne`s 5 bln euro valuation of Ferrari pushed Fiat up more than 2 percent on Friday, better than the sector, as analysts said this was higher than the market had expected. Fiat was forced to issue a statement 10 hours later to try and quell the debate in which it implicitly confirmed the report. The debate continued in Italian newspapers throughout the weekend.
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