Storm clouds linger over Fiat-Chrysler merger


The merger between Fiat (OTCPK:FIATY) and Chrysler is even more up in the air after conflicts in the Middle East and Ukraine take a toll on sales momentum for the brands.

Fiat is trading at only pennies below the 7.727 euros-per-share offering price that's dangling in front of dissenting shareholders.

Two major proxy firms already advised shareholders to vote against the merger.

The wildcard in the mix: The Peoples Bank of China owns a decent stake in Fiat and could tip the scale one way or the other.

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Comments (1)
  • RickMichigan
    , contributor
    Comments (46) | Send Message
     
    In the auto business you are always going up and down as the sales cycles come to an end or start anew. Making this the lead point on why the merger between Fiat and Chrysler is in trouble makes me scratch my head. Certainly the disparity between the current price of FIATY shares and the price you can get by turning in your shares is a problem. Auto sales in general and Chrysler/Fiat vehicle sales in my opinion will be a miniscule factor, which by the way certainly were not down last month when we had the same problem in the Ukraine and Middle East and Chrysler sales broke a record that month.
    15 Aug 2014, 04:29 PM Reply Like
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