Fiat says amount needed to rebuy stakes still below cap

Article by Christian A., on September 1, 2014

Fiat will not need to spend the entire allotted budget for buying shares from investors who opted to sell ahead of its merger with Chrysler Group. Fiat said in a statement that based on a preliminary tally, the amount needed to purchase those shares will top EUR500 million ($658 million), thereby clearing a hurdle for the Italian carmaker.

The merger would have been delayed if the amount needed to buy the shares exceeded the allotted budget. Fiat Chairman John Elkann expressed delight in the result of the tally, adding that they are now looking forward to the completion of the merger.

Fiat-Chrysler chief executive Sergio Marchionne remarked that he was reassured by the fact that the vast majority of shareholders remained loyal and committed. He quipped that investor support is crucial in executing the merger.

Marchionne had said that that if a significant number of investors were to exceed the cap, he would restart the merger process, which means a delay of several months. Under Italian law, Fiat investors could sell their holdings since the carmaker is shifting its registered offices away from the country.

According to Fiat, it was completing counting shares for which cash exit rights had been validly exercised. Fiat said it would provide final details of the count by September 4.

Fiat said the merger is on pace for completion the mid- October as planned. Investors not supporting the merger were given the chance to sell their shares back to Fiat at EUR7.727 per share. [source: Bloomberg.com]

If you liked the article, share on:

Topics: fiat

Comments

Recommended

Subaru customers and fans in the United States have been somewhat envious of their counterparts in Japan. This is because Subaru, most of the time, launches high-performance special edition models...
by - December 18, 2017
One of the legends of the automotive tuning world will be auctioned off at the upcoming 2018 Tokyo Auto Salon in January. We’re talking about the Top Secret V12 Toyota...
by - December 18, 2017
Renault Chairman and CEO Carlos Ghosn inaugurated the all-new Alpine A110 production line. This inauguration was attended by the Minister for Economy and Finance of France, Bruno Le Maire, with...
by - December 17, 2017
TOYOTA GAZOO Racing revealed that it will be participating in the 2018 Tokyo Auto Salon with the theme “Meister's Workshop.” The company will showcase models that have been part of...
by - December 16, 2017
Infiniti has commenced sales of the new 2018 Infiniti QX80 full-size luxury sports utility vehicle. Aside from the standard specs and optional features, potential customers would want to know how...
by - December 15, 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