Sergio Marchionne now owns 1 percent stake in Fiat Chrysler Automobiles

Article by Andrew Christian, on November 7, 2014

Fiat Chrysler Automobiles chief executive Sergio Marchionne now has a 1-percent stake in the carmaker and almost doubled is voting stake after exercising his stock options before the Nov. 3 expiration date. He used to have 6.8 million shares for a 0.65 percent stake in FCA. He now has 12.1 million shares for a 1-percent stake.

He also used to have a 0.4 percent voting stake in FCA, but now has a 0.75-percent voting stake, based on a total share capital of 1.6 billion shares, including loyalty shares, as calculated by Reuters. The shares purchase means Marchionne is now FCA’s fifth-largest shareholder, according to data compiled by Bloomberg.

Exor, the Agnelli family's holding company, remains FCA’s largest with 30 percent of common shares and 46.6 percent of the voting rights. Marchionne exercised options due to expire on Nov. 3 for 6.25 million shares and the same number of shares in CNH Industrial for a price of EUR83.6 million ($105 million), according filings made with Dutch market regulator AFM.

He then sold the shares on Oct. 30-31 for EUR94.3 million, allowing him to gain over EUR10 million. Marchionne then increased his stake in the carmaker by exercising his remaining 10.67 million stock options.

He then sold a portion of those "for the sole purpose of funding the strike price and meeting the relevant tax liabilities."

FCA’s share price surged after Marchionne announced a plan to spin off Ferrari, sell a 10-percent stake through a public offering and distribute the rest of FCA's stake in the brand to shareholders. The move is part of a bigger plan to raise funds help trim group debt and finance its five-year business plan.

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