Fiat SpA has announced the company has no intentions of calling another shareholders’ meeting to axe, raise or modify the already set 500 million euro (397.50 million British pound) cap it established for stake owners that want to bail out.
Fiat SpA and Chrysler Group LLC chief executive officer Sergio Marchionne has called for a merger of the companies to create the Fiat Chrysler Automobiles NV, a company to be registered in the Netherlands, headquartered in London and listed on the New York Stock Exchange and in Milan. The move would create the world’ seventh largest automaker.
“If the cap were to be exceeded, and the company chooses to call a new extraordinary shareholders’ meeting, that meeting could simply adopt a new merger plan which would result in the determination of a new cash exit price,” Fiat said in a statement.
The statement mirrors comments made by Marchionne recently and was issued after Italian daily La Repubblica reported that Fiat could simply increase the self-targeted limit in order to be sure the merger would go as planned. Under the current deal, if there are dissenting investors, they can sell their assets back to Fiat at an exit price of 7.727 euros – and if a 500-million-euro threshold is achieved, the merger would be scuttled.