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

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →