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UPDATE 1-Ifil's Fiat-linked cap hike almost fully subscribed

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MILAN, July 28 (Reuters) - Fiat's main shareholder Ifil said on Monday its 502.2 million-euro ($577 million) capital increase, carried out to fund its part of a do-or-die restructuring of Italy's top industrial company, had been 96.3-percent subscribed.

Fiat is raising 1.8 billion euros via its own capital increase which closes on Wednesday. That cash, together with money already raised from asset sales and future cash flow, should cover a 19.5 billion-euro restructuring, Fiat says.

"The capital increase is closed with a success," Ifil said in a statement.

Ifil's parent Ifi , which is also controlled by Fiat's founding Agnelli family, said on Friday it too had successfully completed almost all of its own 456.7 million-euro capital increase.

Earlier this month, Ifil Chairman Gianluigi Gabetti said he did not expect to have to pump any more money into Fiat while it wrestles through its restructuring plan, aimed at pulling it back to net profit and positive cashflow by 2006.

Fiat is due to announce the success rate of its capital increase on Thursday when it will also present second-quarter results, which are expected to show more losses.

Once Europe's largest carmaker, Fiat has been dragged into the worst crisis in its 104-year history by a slump in car sales and high costs related to a diversification drive in the 1990s.

While top managers did the rounds of investors to try to sell the capital increase, former 7.6-percent shareholder Dodge & Cox dumped almost its whole stake and Deutsche Bank said it would not fill its 1.6-percent share of the cash call.

Major Italian investors, most of whom are -- or are related to -- Fiat creditor banks, have said they will pay up.

Fiat's creditors have helped guarantee the capital increase and are likely to wait to see how many shares they are left holding before agreeing to hand Fiat another two billion-euro loan or renegotiate last year's three-billion convertible loan.

Ifil shares closed down 0.3 percent at 1.97 euros.