Deals
Fiat Bonds Signal Optimism That Renault Merger May Be Revived
This article is for subscribers only.
Fiat Chrysler Automobiles NV bonds suggest investors haven’t abandoned hope of a potentially ratings-boosting merger with Renault SA, even after the Italian automaker withdrew from talks on forming the world’s third-largest carmaker.
Fiat’s 1.25 billion-euro ($1.4 billion) 2024 notes are quoted at 110 euro cents on Friday, about 1 cent higher than the close on the last day of trading before the Renault merger proposal. The bond jumped almost two cents on May 27, fueled by the prospect of mainly junk-rated Fiat joining forces with solidly investment-grade Renault.