Traders of Fiat shares assign their first value to the two stocks formed from the reorganization

Article by Christian Andrei, on January 3, 2011

Traders of Fiat S.p.A. shares expect a "crazy" day on the first Monday of 2011 when investors assign their first value to the two stocks formed from the biggest reorganization in Fiat's 111-year history.

In an average estimate of analysts compiled by Bloomberg, the new company, Fiat Industrial S.p.A., whose primary assets are truck and tractor makers Iveco and CNH Global NV, could reach EUR9.40 on the Milan exchange on Jan. 3, 2011.

Shares of both Fiat and Fiat Industrial may fluctuate on the first day because Fiat hasn't given an indication of the stocks' valuation and Fiat's profit forecasts don't take into account a Chrysler Group LLC stake.

Estimates show that Fiat's auto division may trade at EUR6.65, implying the two stocks combined would be 7.1 percent more than the old Fiat's close on Dec. 29, 2010.

With a recent market value of EUR18.4 billion ($24 billion) and whose first car was the 4 HP developed in 1899, Fiat had gained 44 percent since announcing the spinoff on April 21, 2010.

Investors are getting a Fiat Industrial share for every Fiat share they hold. Head of listings at Borsa Italiana, Nunzio Visciano, said the Milan exchange has no plan to take orders in the pre-opening auction phase on Jan. 3.

Alessandro Capuano, head of the Italian trading desk for IG Markets in Milan, doesn't remember an operation of such type in Milan, especially with a company like Fiat. He added that "it could be a highly volatile trading day." [via Bloomberg]

Topics: fiat, shares

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Volkswagen Group’s dieselgate saga continues, but it appears the German company would be able to get out of trouble, but it would not be unscathed. This development comes as Volkswagen...
by - January 22, 2017
When a car has been in the market for nearly six years, it loses some of its luster and its customers tend to go for the all-new model with a...
by - January 22, 2017
Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries