Shares in Fiat soared in opening trade to add more than 5 per cent as the death of honorary chairman Mr Giovanni Agnelli was seen by many as a boost to the prospects of the troubled Italian car-maker.
Shares were up 5.42 per cent at €8.60 in Milan, while the Mib 30 index was 0.11 per cent higher.
The Agnelli family announced the death of Giovanni Agnelli, 81, just as the stock market was opening.
Observers said Agnelli was very much the patriarch, and kept the family together. His death would likely cause schisms within the tight family group, making it easier for an opportunistic bidder to move in and secure control of Fiat.
The ailing Fiat industrial conglomerate should find it easier to dispose of its automobile business, its main source of losses, a Milan trader said.
"It's very cynical, but Giovanni Agnelli was presented as being very attached to Fiat Auto. With his death, it will be easier to dispose of the automobile business," he said.
Fiat, Italy's biggest private employer, did a major restructuring last year, including asset disposals and job cuts.
AFP