Update on Fiat's Short Base After Supreme Court Decision

A group of three Indiana pension funds asked the Supreme Court on Sunday to immediately delay the sale of bankrupt automaker Chrysler LLC to a group led by Italian carmaker Fiat SpA while they challenge the deal. The request, which moves the legal battle to the highest court in the United States, was filed after a U.S. appeals court in New York approved Chrysler's sale to a group led by Fiat (FIATY.PK). Italian car maker Fiat is currently trying to strike deals to enhance its value, however it has recently pulled out of talks to buy GM Europe. The short base (as measured by Percent Shares Outstanding on Loan) for Fiat currently stands at 6.83%.

Fiat's share price has seen an increase of 87% in the last 3 months. However Utilisation (the measure of supply and demand in the securities lending market) has fluctuated between 50% and 26% and Fiat still remains Europe's most heavily-borrowed car manufacturer as measured by shares outstanding on loan.

The short base for Fiat is above that of Peugeot (PEUGY.PK) (6.8%), Renault (RNSDF.PK) (5.55%) and BMW (6.17%).

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Comments

[speculari:]

That bucket of warm spit is beginning to look a bit stale and cold.

Jun 09 10:39 AM

[TinyTim:]

Lest we forget-

F.I.A.T. stands for "Fix It Again, Tony"

Jun 09 02:25 PM