Fiat will not raise the EUR500m (US$668m) cap it has set to pay shareholders who object to the company's merger with Chrysler.
The company has denied reports in the Italian press that it could waive the cap to help ease the merger to form Dutch-registered Fiat Chrysler Automobiles (FCA). The merger, approved by 85% of shareholder earlier this month, will allow a US listing to help fund investment.
The plan will pay shareholder who don't want their shares transferred to the new FCA EUR7.73 per share.
CEO Sergio Marchionne has repeatedly said that he would abandon the merger and start all over again on his own terms rather than exceed the EUR500m cap.
Statement from Fiat
Certain press has engaged in speculation today suggesting that Fiat would call an extraordinary shareholders meeting to waive or raise the Euro 500 million cap which is a condition precedent to the merger if the cap were to be exceeded. Fiat reiterates that it has no intention to waive or raise the cap. Fiat intends to complete the merger as approved. 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, based, according to applicable regulations, on the most recent stock price and minimize the cash outlay by the Company.
Turin, 12 August 2014
Original source: Fiat Group