Fiat Overcomes the Chrysler Merger Hurdle
Fiat is not required to expend more than the maximum value the car maker set to purchase shares from shareholders who chose to sell before its merger with Chrysler Group. The biggest obstacle has been lifted due to this simple move. The company gave a statement that as per their preliminary tally, the total is not expected to go beyond $658 Million dollars approximately that Fiat allotted. If that amount had exceeded the company’s cap, it would have taken longer to close the deal. The chairman of Fiat, John Elkann, has expressed delight over the results and is now looking forward to complete the project.
The Fiat-Chrysler CEO Sergio Marchionne has expressed that his faith has been restored by the fact that most of his shareholders have been honest and loyal towards the company. He also said that the investor support is absolutely necessary for them to successfully complete the execution phase which is set to improve the positioning of the group in the market. He also said that if the critical mass of the shareholders did not stand by the actual cap of the company, he would have re-initiated the merger process which would have delayed the deal for several months.
As per the Italian laws, the shareholders have the right to sell their shares as Fiat is relocating its headquarters outside of Italy. Fiat has informed that the counting of shares is underway and the cash exit rights have been fully exercised. However, it can be said already that it will not exceed the 500 Million Euro mark. The final details of the results will be announced on 4th September.