A week earlier, a deal was announced to create a big corporate conglomerate around the Ferruzzi-Montedison chemicals group, and put it under the control of Mediobanca and the powerful Agnelli family, which controls Fiat.

But the bid was spurned by the Agnelli family, which controls Fiat, leaving Mr. Colaninno to look for opportunities further afield.

The Agnellis, who control Fiat, offered $326 million for enough Exor shares to give them a two-thirds stake.

Mr. Morchio resigned just days after the death of Umberto Agnelli, head of the family that controls Fiat.

News of the arrests buffeted Fiat shares and rippled through the Milan stock exchange, where companies owned by the Agnelli family, which controls Fiat, account for 12 percent of the market's capitalization.

The Agnelli family, which controls Fiat, has said that it does not want to sell the car unit.

Worked for Olivetti After working for the Olivetti Corporation, he joined I.F.I., the holding company that controls Fiat, the large Italian auto maker.

Shares in the two major holding companies, known by their Italian initials IFI and IFIL, through which the Agnelli family company controls Fiat, posted gains.

Ifil, an investment company that controls Fiat and is majority-owned by the Agnelli family, said it would invest the proceeds in new businesses.

Add in the other holdings of the Agnelli family, which controls Fiat, and it's more like 25 percent - at least as measured by stock value.