TURIN, Feb 14: Investors cheered Fiat on Monday for settling a long row with General Motors without going to court, but said a $2 billion cheque would not be enough to solve the Italian industrial group's problems.
Fiat and GM dissolved their 5-year partnership on Sunday and Fiat gave up its right to force GM to buy its loss-mired car unit - a put option that was at the centre of a spat.
Analysts and investors said the 1.55 billion euro payoff removed a major distraction for Fiat's management, which can now focus on restoring its 106-year-old car arm and sign new cost-saving partnerships.
"Now Fiat Chief Executive Sergio Marchionne has to convince the market that he will be as good at turning around the carmaker situation as negotiating with GM," said Thierry Huon, an analyst at Exane BNP Paribas. Fiat shares jumped on the deal and closed up 4.9 per cent at 6.22 in very heavy volume, with about 13 per cent of ordinary shares changing hands. -Reuters
