Fiat's bid to gain a large stake in Italian insurer Fondiaria took a knock yesterday, despite the Italian industrial group's announcement that it had acquired more than 2% of the Florence-based company.
Fondiaria also revealed yesterday that that it had bought a 2% stake in Fiat.
Under Italian stock market regulations, the cross-holdings mean neither side can increase its voting rights in the other above 2% for a year.
Fiat, through its insurance arm Toro, made a formal offer to buy 24.4% of Fondiaria from Montedison earlier in January. The Fondiaria move could slow Toro's €630m (£394m) bid.
Fondiaria is one of Italy's leading insurance companies and is seen as an attractive target in the fragmented Italian property and casualty insurance market.
It is understood to have matched the Fiat stake as a defensive move to improve its bargaining position with Fiat.
