Business Notes Buyouts

For nearly a year, Fiat Chairman Gianni Agnelli has been trying to rid Europe's largest private automaker of an unwanted partner: the government of Libyan Strongman Muammar Gaddafi. In 1976 Libya purchased a 15% share of the then troubled company for $320 million and won two seats on Fiat's 15-member board. After Fiat executed a successful turnaround to become Europe's best- selling automaker, the Tripoli government refused to part with its shares. Last week Libya, presumably strapped for cash by low oil prices, handed over its shares for a handsome $3 billion. Two of the buyers, West Germany's Deutsche Bank and Mediobanca of Milan, plan to offer their stake to investors, in one of the largest secondary placements to date in the burgeoning Euroequities market.

With Libya out of the picture, Fiat is free to negotiate military contracts with the U.S. Government, an activity that was discouraged by the Reagan Administration as relations with Libya deteriorated.