IN BRIEF (Page 16)

Fiat mulls rights issue

Fiat SpA, Italy's largest carmaker, is sounding out investment banks about plans for a 2 billion-euro ($2.5 billion) rights offering amid a slump in demand for vehicles, three people familiar with the talks said. The carmaker hasn't yet decided whether to proceed with the plan, said the people, who declined to be identified before an agreement. Fiat has lined up a 1 billion-euro loan, less than it originally sought, from Intesa Sanpaolo SpA, UniCredit SpA and Credit Agricole SA, one person said.

Fiat needs to pay back 4.8 billion euros of debt this year and may have its credit rating slashed to junk status. Fiat is poised to benefit from part of the 2 billion-euros stimulus package the government offered car buyers in February. French competitors got 6 billion euros in loans.