This Friday the Fiat shareholders will meet for the last time in Italy where they will probably approve the merger of the automaker with the Chrysler Group.
Fiat is expected to win the 2/3 majority vote needed for the merger, which will create the world’s 7th biggest automaker.
Different advice has been issued to shareholders by close advisor. While ISS and Frontis Governance recommend a negative vote as Exor (Fiat’s biggest shareholder) could have a rise in its voting power up to 46%, Glass Lewis suggested Fiat should vote in favor because the merger brings about more benefits than concerns. Fiat bought out Chrysler earlier this year and Sergio Marchionne, its CEO, stated in July that he believed the merger would be approved. The automaker merger will be registered in Netherlands under the name of Fiat Chrysler Automobiles NV, or FCA.
Fiat said it will invest €1 billion in the Turin Plant in Italy, its oldest and largest factory, to build Maserati’s first SUV, the Levante, and also other unnamed products. Before the vote, Exor and Fiat denied reports that Exor is planning to share its Fiat shares to Volkswagen and also denied the idea of a merger with PSA/Peuoget-Citroen.
Marchionne’s business plan for FCA aims to raise annual global vehicle sales by 2018 to 7 million from 4.4 million last year and to increase earnings before interest and taxes to €8.7-€9.8 billion, from €3.5 billion last year.
By Gabriela Florea
by Cristian Gnaticov
) - Thursday, July 31st, 2014 - filed under Chrysler
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