Fiat Shareholders Came Close to Merger Upset
Fiat SpA shareholders came close to derailing a corporate reorganization on which the creation of the combined Fiat Chrysler Automobiles group depends, according to data the company released Thursday, reported The Wall Street Journal. Investors in the Italian auto maker last week tendered shares worth €464 million ($608 million) as they exercised their right to ... Read More »
Fiat SpA shareholders came close to derailing a corporate reorganization on which the creation of the combined Fiat Chrysler Automobiles group depends, according to data the company released Thursday, reported The Wall Street Journal.
Investors in the Italian auto maker last week tendered shares worth €464 million ($608 million) as they exercised their right to sell their stock to the company, an amount just shy of the €500 million limit that Chief Executive Sergio Marchionne had set for any payout.
Mr. Marchionne had said that he would scrap the reorganization if the payout was any larger, at least temporarily halting the creation of Fiat Chrysler.
With the reorganization now going ahead, the merged company plans to list shares on the New York Stock Exchange Oct. 13, a move designed to give Fiat Chrsyler more flexibility in financing a multibillion-euro expansion plan involving the rollout of several new models.
Fiat also said Thursday that it would sell an unspecified amount of new bonds.
The reorganization involving Fiat and its 100%-owned Chrysler unit includes the merger of Fiat with a Dutch entity which will take the Fiat Chrysler name.
Fiat plans to move its legal headquarters to Amsterdam and take up tax residency to the U.K. as well as have its primary stock market listing in New York.
From Sept. 5 until Oct. 6, Fiat will offer the tendered shares back to shareholders at the predetermined exit price of €7.73 a share. Fiat shares traded in Milan at €7.54 early Thursday.
Fiat said the sale of new debt would come in the form of the reopening of a July bond issue.
At that sale, Fiat sold €850 million in bonds maturing in 2022 that pay 4.75%. The final terms and value of the new bond sale will be based on market conditions at the time of pricing, Fiat said.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →