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https://www.bloomberg.com/news/articles/2019-06-05/fiat-withdraws-merger-bid-after-renault-delays-decision-on-combination

 

Elkann: shit or get off the pot!

 

WSJ Update: looked like Nissan upset the apple cart

 

Fiat Chrysler Automobiles NV has withdrawn its proposal to merge with Renault SA after the French auto maker’s alliance partner, Nissan Motor Co. , refused to back the deal, according to people familiar with the matter.

 

Nissan’s two representatives on Renault’s board were withholding support late Wednesday as other board members prepared to vote in favor of the $40 billion merger, the people said. The planned abstentions raised doubts about Nissan’s commitment to preserving the alliance if the merger were to proceed, the people said.

 

The French government said Wednesday it wouldn’t approve Fiat Chrysler’s merger proposal without Nissan’s guarantee that Renault’s longstanding alliance with the Japanese auto maker would survive. The state asked to delay a vote on the merger, prompting Fiat Chrysler to withdraw its merger proposal, the people said.

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I'm not sure, but I think it's for the best.  Do you really want the govt france sitting on the board, dictating capital allocation policy and what plants can and can't be shut and who can and can't be laid of in-spite of overcapacity?  Right now we have Elkann with the majority vote sitting on gobs of cash with a stock at 3x P/E (and probably much lower tomorrow).  I think we are maybe better set up (at least nearer term).  Can't deny the logic of the deal though, but it looks complicated with all the stakeholders.

 

Hopefully FCA can join the alliance in some way without merging the companies.

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I'm not sure, but I think it's for the best.  Do you really want the govt france sitting on the board, dictating capital allocation policy and what plants can and can't be shut and who can and can't be laid of in-spite of overcapacity?  Right now we have Elkann with the majority vote sitting on gobs of cash with a stock at 3x P/E (and probably much lower tomorrow).  I think we are maybe better set up (at least nearer term).  Can't deny the logic of the deal though, but it looks complicated with all the stakeholders.

 

Hopefully FCA can join the alliance in some way without merging the companies.

 

That’s why I would have preferred Peugeot over Renault. Peugeot also has a family watching over, and I am sure they would have found common ground with Elkann.

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I'm not sure, but I think it's for the best.  Do you really want the govt france sitting on the board, dictating capital allocation policy and what plants can and can't be shut and who can and can't be laid of in-spite of overcapacity?  Right now we have Elkann with the majority vote sitting on gobs of cash with a stock at 3x P/E (and probably much lower tomorrow).  I think we are maybe better set up (at least nearer term).  Can't deny the logic of the deal though, but it looks complicated with all the stakeholders.

 

Hopefully FCA can join the alliance in some way without merging the companies.

 

Agree!  The deal sounded good until everyone started getting involved, Renault shareholders demanding a dividend as well and now Nissan.  The fact that these guys were moving to a deal should wake up others to move swiftly.  Elkann wants a deal to reduce their exposure...but he's not going to give it away, which is good for FCAU shareholders.

 

I'm not sure, but I think it's for the best.  Do you really want the govt france sitting on the board, dictating capital allocation policy and what plants can and can't be shut and who can and can't be laid of in-spite of overcapacity?  Right now we have Elkann with the majority vote sitting on gobs of cash with a stock at 3x P/E (and probably much lower tomorrow).  I think we are maybe better set up (at least nearer term).  Can't deny the logic of the deal though, but it looks complicated with all the stakeholders.

 

Hopefully FCA can join the alliance in some way without merging the companies.

 

That’s why I would have preferred Peugeot over Renault. Peugeot also has a family watching over, and I am sure they would have found common ground with Elkann.

 

Sometimes a little jealousy makes the love-making better...I wouldn't be surprised if Peugeot waltzes back in and screws over Renault!  Cheers!

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I'm very pleased Elkann did not get sucked into a prolonged negotiation. With the French state and Nissan this was always going to be very complex. He's now sent a clear signal to the market. I have a feeling this is just beginning, there are only so many automakers and they all need scale.

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I'm very pleased Elkann did not get sucked into a prolonged negotiation. With the French state and Nissan this was always going to be very complex. He's now sent a clear signal to the market. I have a feeling this is just beginning, there are only so many automakers and they all need scale.

 

Yes, fully agree!  I think they can do fine on their own, but everyone knows they want to do a deal and without too many strings.  Don't waste our time!  Cheers!

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From IBKR

 

 

Dear Client,

 

Please be advised that there is a voluntary offer for FIAT CHRYSLER AUTOMOBILES NV in which you can request withholding tax refund.  You will shortly receive notification regarding this voluntary offer through IBKR's Account Management.

 

Here is the overview of the offer:

 

FIAT CHRYSLER AUTOMOBILES NV has announced a cash dividend effective date 2019-05-20 with a gross rate of $1.45639 USD per share held on Record date. This dividend was withheld at a rate of 41%, which included 26% Italian, and 15% Dutch tax withheld at source. All non-Dutch holders are able to receive a refund for the 15% Dutch tax withheld (approximately $0.218459/sh), provided they release their information to the agent. In order to receive the refund, IBKR is required to submit beneficial holder information (name, address, account type, and tax identification) to the tax agent (Globe Tax).

 

Non-Dutch holders are asked to make an election:

 

Option 1: Release my information to the agent in order to receive a refund of the 15% Dutch withholding tax. The tax refund carries a $0.0025/share fee charged by the agent. (Default)

 

Option 2: Do not release my information to the agent. By electing this option, you will not receive a refund of the 15% Dutch withholding tax.

 

In the absence of an election, IBKR will be releasing the necessary information to the tax agent in order for you to receive the 15% tax refund in accordance with Option 1.

 

The deadline to make an election will be 2019-06-11 @ 1:00 PM EST.

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That IBKR news is interesting and surprising... I called IBKR on Friday and was told there was nothing to be done to recover the tax as they do not deal with GlobeTax.  Then had an email exchange with GlobeTax and they also told me that IBKR does not use their service so tax was unrecoverable.

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That IBKR news is interesting and surprising... I called IBKR on Friday and was told there was nothing to be done to recover the tax as they do not deal with GlobeTax.  Then had an email exchange with GlobeTax and they also told me that IBKR does not use their service so tax was unrecoverable.

 

Chances are they realized the problem and fixed it over the weekend. They should really do the same with the ordinary dividend paid on May 2nd. It has the same problem. The next deadline is June 21.

 

https://www.fcagroup.com/en-US/investors/stock_info_and_shareholder_corner/Pages/dividend_distribution.aspx

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Did anyone here qualify as a class member in the recent FCAU securities litigation settlement? I had the paperwork on my desk for a long time and like a moron I ignored it. The deadline was July 10; I just opened it today so I am 10 days too late. Just curious what the pro rata payoffs were/are. I managed to calculate how much I potentially could have made and it made me sick, but I am assuming the actual number is less given it's a limited number of dollars to go around.

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Did anyone here qualify as a class member in the recent FCAU securities litigation settlement? I had the paperwork on my desk for a long time and like a moron I ignored it. The deadline was July 10; I just opened it today so I am 10 days too late. Just curious what the pro rata payoffs were/are. I managed to calculate how much I potentially could have made and it made me sick, but I am assuming the actual number is less given it's a limited number of dollars to go around.

 

Mine says it must be postmarked or received no later than Aug. 28.

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Did anyone here qualify as a class member in the recent FCAU securities litigation settlement? I had the paperwork on my desk for a long time and like a moron I ignored it. The deadline was July 10; I just opened it today so I am 10 days too late. Just curious what the pro rata payoffs were/are. I managed to calculate how much I potentially could have made and it made me sick, but I am assuming the actual number is less given it's a limited number of dollars to go around.

 

Mine says it must be postmarked or received no later than Aug. 28.

 

My understanding is that there are two separate class action cases. The deadlines are different.

 

Jul 10

http://www.fiatsecuritieslitigationsettlement.com/

 

Aug 28

https://www.fiatchryslersecuritieslitigation.com/

 

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Don't ignore securities litigation paperwork. It's free money (minus the effort).

 

Just general observation. No position in FCAU. Position in Exor, but that does not give me FCAU litigation standing.

 

Other than the effort required, are there any potential downsides / reasons not to do this?

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Don't ignore securities litigation paperwork. It's free money (minus the effort).

 

Just general observation. No position in FCAU. Position in Exor, but that does not give me FCAU litigation standing.

 

Other than the effort required, are there any potential downsides / reasons not to do this?

 

Yes and no. For GM's lawsuit, if you bought in 2012, you were excluded - while other shareholders were able to take money from the coffers. Was this fair? Not really, at least 1 shareholder challenged it, although I'm not sure what came of it. You can also object if, for example, you don't agree or aren't able to participate for whatever reason.

 

But if you're in the money, it's essentially free and likely fair to you (although again, it takes money from shareholders' coffers and leaves management alone)

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hey all:

 

FCAU has reported earnings and they were better than expected.

 

FCAU also sees strong earnings & margins for the rest of the year and they are sticking to their sales & profit guidance.

 

North America did the best of course.

 

Stock is only up $.36 for the day....guess they didn't do as good as TSLA did.  Oh well, live and learn!

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hey all:

 

FCAU has reported earnings and they were better than expected.

 

FCAU also sees strong earnings & margins for the rest of the year and they are sticking to their sales & profit guidance.

 

North America did the best of course.

 

Stock is only up $.36 for the day....guess they didn't do as good as TSLA did.  Oh well, live and learn!

 

Phhhhffffttt!  +1!  Cheers!

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I added some fcau pre-market today as the selloff yesterday seemed overdone.

 

This is not an easy stock to own and many people, who initially owned it, have given up on it. It also became a quite boring company (without ferrari, with new CEO). I don’t know which way this will go eventually, but there is definitely upside.

 

On a side note these guys really need to work on their delivery on the conf calls, audio quality is quite bad (and it sounds like they are just not talking into the mic), and a bit more drive would fit them well. You could get the impression that they’re talking about some random, unrelated company on those calls.

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