People familiar with the matter said that Fiat’s Chief Executive Officer Sergio Marchionne plans to propose to the carmaker’s board that the New York Stock Exchange be the primary market for shares of the company created from a merger with Chrysler Group LLC.
Fiat, which gained full control of Chrysler earlier this week after buying the remaining 41.5 % holding, intends to decide on details of the merger on Jan. 29. Marchionne has run the US carmaker, since it emerged from the government-backed bankruptcy restructuring in 2009. Fiat declined to comment on integration plans ahead of the meeting.
At the board meeting next week, Marchionne is due to recommend making Milan as the secondary listing, said the people who asked not to be identified because the discussions are private. The CEO of both Fiat and Chrysler also aims to have a fiscal domicile in the UK for tax purposes, while the headquarters could be located elsewhere, they said.
A primary listing in New York would be a milestone in Marchionne’s decade-long drive to transform Turin, Italy-based Fiat from an embattled regional player into a carmaker with worldwide ambitions. Marchionne, 61, wants to create a manufacturer with the scale to better challenge the likes of GM or Volkswagen.
Fiat’s board will lay out terms for merging the two carmakers at the Jan. 29 meeting, including the corporate organization and the location of its headquarters and main stock listing, Chairman John Elkann said at a North American International Auto Show press briefing. The combined company’s name will include Fiat and Chrysler. Also, a three-year business plan will be presented in May.
The shares gained as much as 10 cents, or 1.3 %, to 7.52 euros and traded up 0.9 % as of 9:10 a.m. in Milan. The stock has climbed 59 % in the last 12 months, valuing the automaker at 9.37 billion euros ($12.8 billion).
by Aurel Niculescu
) - Thursday, January 23rd, 2014 - filed under Chrysler
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