Report – Fiat CEO to seek US listing, British tax home image

According to people familiar with the plans, Sergio Marchionne, Fiat-Chrysler’s chief is set next week to propose to the board a UK tax home and listing it on a New York exchange.

His proposal would mirror the direction taken last year by Fiat’s sister company, CNH Industrial, of which he’s chairman. It would help him avoid making the politically difficult choice between Italy and the US as the headquarters for the new group, and could allow the company to pay less tax on dividends.

Fiat’s board would still need to approve the proposals. Marchionne is also expected to propose New York as the market for the group’s primary stock listing. The CEO suggested strongly last week in a briefing with reporters that the combined Fiat-Chrysler would seek a US stock listing, because it could give the group greater access to capital than Milan, where Fiat’s stock trades.

Fiat and Chrysler are expected to post a slightly higher combined net profit of EUR400 million for the fourth quarter, but a 24% drop for the year to EUR1.07 billion, according to the median of forecasts from 22 analysts compiled by Fiat. A drop will have been due to Fiat’s problems in Europe, where it faces weak sales and the cost of shifting its focus toward making more cars for its premium and luxury brands.

The expected results would reflect a reversal of roles for the two automakers. Chrysler was brought out of bankruptcy by Fiat. But now, the US operation is supporting its Italian parent as it rolls out new models to meet a strong recovery in US demand.

Via Wall Street Journal