An important proxy advisor – ISS – as well as smaller member Frontis Governance have both recently recommended investors to vote against the merger between Fiat and its US subsidiary Chrysler Group LLC.
Now, another major player in the field – Glass Lewis – has moved to positively recommend the merger. According to the company, during the shareholder meeting scheduled on August 1, investors should vote for the merger as the benefits outweigh the arguments against. The main concern among the advisors is that a proposed change on voting power could levy an increase in influence for the main shareholder – the Agnelli family holding Exor.
“The proposed reincorporation is, on balance, in the best interests of shareholders as the benefits of access to deeper and more robust capital markets and improved governance standards outweigh our concerns regarding the potential increase in Exor’s voting power,” Glass Lewis said in its recommendation document.
Fiat SpA managed to finally buy all the shares of Chrysler Group LLC at the start of the year and now mulls to incorporate both into larger Fiat Chrysler Automobiles NV – a company that has a Dutch registration, London main headquarters and main listing on the New York Stock Exchange.
Via Automotive News Europe