Jump to content

FCAU - Fiat Chrysler Automobiles


LC

Recommended Posts

  • Replies 3k
  • Created
  • Last Reply

Top Posters In This Topic

The National Highway Traffic Safety Administration said on Wednesday that at Chrysler's current pace it would take nearly five years to fix all of the affected Jeep Grand Cherokee and Jeep Liberty SUVs involved in a recall announced last June.

 

http://www.reuters.com/article/2014/07/02/us-autos-chrysler-jeep-idUSKBN0F725520140702

 

Maybe they can speed it up, do what GM does and upsell new Jeeps

:)

Link to comment
Share on other sites

The suicide inicident happened after the letter was written so I'm going to guess it was the Maser Strike... Thanks!

Link to comment
Share on other sites

This is how I understand the conversion and I hope someone can confirm it. 

 

There are 2 types of shares, common and special voting, in the new company, FCA.  For every Fiat share, you will be receiving 1 common share of FCA at ~$5 listing price.  Under some conditions, such as voting on the merger on Aug 1, you will also receive 1 voting share for every Fiat share.  That means, you should be receiving 2 shares, 1 common and 1 voting, for every Fiat share.  My question is what will happen if you don't vote, do you not receive the 1 voting share? 

Link to comment
Share on other sites

After reading the SEC documents and Fiat Spa website, each current share will transfer to 1 of the new share class, however the legacy owners will have 2 votes for their share. Exxor has a 30% holding but under new structure will get 41.5% control of the company

 

The Par value of the share is arbitrary and archaic. FIATY's current par value is 5.03 and will remain the same at the time of listing.

 

 

Link to comment
Share on other sites

After reading the SEC documents and Fiat Spa website, each current share will transfer to 1 of the new share class, however the legacy owners will have 2 votes for their share. Exxor has a 30% holding but under new structure will get 41.5% control of the company

 

The Par value of the share is arbitrary and archaic. FIATY's current par value is 5.03 and will remain the same at the time of listing.

 

Thank you, I didn't get that because usually that's always $0.01 or $0.001 or something. I still need time to read the SEC filing, but are they diluting shares?

Link to comment
Share on other sites

I presume they are converted into a new share. I also believe they are eligible for legacy voting status as well, not sure what that counts for.

 

I wonder will there by any tax consequences for US holders? The filing said no, so if I sell one day after the listing, will my cost basis and purchase date be my old cost basis when I bought the ADR?

Link to comment
Share on other sites

I presume they are converted into a new share. I also believe they are eligible for legacy voting status as well, not sure what that counts for.

 

I wonder will there by any tax consequences for US holders? The filing said no, so if I sell one day after the listing, will my cost basis and purchase date be my old cost basis when I bought the ADR?

 

Will ADR holders also receive the additional voting? (EDIT: This is answered in http://www.fiatspa.com/en-US/media_center/FiatDocuments/2014/Luglio/Fiat_calls_the_General_Meeting_of_shareholders.pdf you do need to participate in the meeting to receive it but b proxy is ok and you need to hold the shares from the meeting up to the merger).

 

How much dilution will there be (roughly)?

Link to comment
Share on other sites

My understanding is the following:

 

There are 1,250,955,773 shares of FIAT group issued and outstanding. Of those, roughly 40 m are treasury shares (3.2%). Apparently, per the FT article, Marchionne has publicly stated that they are going to sell those shares because they "need to start creating liquidity in the US market."

 

According to FactSet, the public float of fiat shares on the Italian stock exchange is 837.45 m shares, but if I understand the WSJ article correctly, public float of the new shares will be 750.5 m shares. On the Borsa Italia site, 59.2% of shares (~740 m) are held by owners of less than 2% of total outstanding.

 

The average turnover of F.mi shares this year is about 1.4% per trading day. For Ford that is ~0.6%.

 

I don´t see how an increase in public float by 5.4% has a positive impact that outweighs the (at least perceived by myself) loss of selling those shares at current prices. If the company needs cash, I think they should just call a spade a spade.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...