Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Fiat Says Investor Stock Withdrawals Totaled $610 Million

Don't Miss Out —
Follow us on:

Sept. 4 (Bloomberg) -- Fiat SpA investors exercised 463.6 million euros ($610 million) in cash-exit rights, 7.3 percent less than the limit set by the Italian carmaker to complete a merger with its U.S. unit Chrysler Group LLC.

About 60 million shares were submitted by investors at the cash-exit price of 7.727 euros a share, Turin-based Fiat said today in a statement. Had the tally exceeded the company’s 500 million-euro spending cap, the combination with Chrysler would have been delayed.

Fiat said a week ago that the merger is on track for completion by mid-October as the cost of buying out investors who want to pull out wouldn’t exceed the limit. The carmaker reiterated today that the deal won’t be completed should buyout costs for withdrawal rights and creditors opposing the transaction amount to more than the cap.

The stock submitted will be offered to the rest of Fiat’s investors at the exit price from tomorrow through Oct. 6, the company said. Afterward, the carmaker may offer it on the open market at that price.

Chief Executive Officer Sergio Marchionne said on Aug. 30 that the shares offloaded by the departing investors may be used “to create liquidity.” The manufacturer will sell the stock as part of the newly created Fiat Chrysler Automobiles NV’s listing on the New York Stock Exchange, which may take place Oct. 13, he said.

Marchionne is merging Fiat with Auburn Hills, Michigan-based Chrysler to create the world’s seventh-largest automaker and become more competitive against industry heavyweights such as General Motors Co., Volkswagen AG and Toyota Motor Corp.

Fiat’s stock fell to the lowest this year on Aug. 6 amid concern that the cost of buying out shareholders would total more than the 500 million-euro budgeted, potentially leading to a delay in the combination. The exit price is 1.9 percent more than the 7.58 euros that Fiat shares cost at the close in Milan yesterday.

To contact the reporter on this story: Tommaso Ebhardt in Milan at tebhardt@bloomberg.net

To contact the editors responsible for this story: Chris Reiter at creiter2@bloomberg.net Tom Lavell

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.