FCAU - Fiat Chrysler Automobiles

[sleepydragon]

Even if enough sold out, Fiat said their shares would first be offered to existing shareholders and if those investors took up the offer the shares would no longer count as exit shares.

 

The outcome of the operation will be known by early October.

 

Knowing Marchionne, I would not be surprised if this was a done deal now.

 

If more wanted to exit, maybe Fiat would just offer these shares at market and cover the difference?

;)

 

so he's saying someone ought to be willing to buy those shares at above the current market price. I think that's a bullish hint?

 

 

 

[frommi]

Has anybody a clue what happens if i buy shares now and the merger is approved?

 

Investors will receive one FCA share for each Fiat share they hold. Most will also be eligible for special voting shares.

 

Sorry for being stupid and annoying, but does this mean i get a share of FCA even if i didn`t vote yes at the meeting for every FIAT share i buy now?

Looks like i didn`t get all facts right on my assesment of the merger.

[sleepydragon]

Has anybody a clue what happens if i buy shares now and the merger is approved?

 

Investors will receive one FCA share for each Fiat share they hold. Most will also be eligible for special voting shares.

 

Sorry for being stupid and annoying, but does this mean i get a share of FCA even if i didn`t vote yes at the meeting for every FIAT share i buy now?

Looks like i didn`t get all facts right on my assesment of the merger.

 

yes. if u don't vote, your broker vote for you, I think. if u didn't go to the meeting, u won't get the special voting shares. but those special shares has no dollar values.

 

I wonder if anyone know when the ADR shares get converted to the new NYSE shares, will my broker or the ADR administrator charge special fees to process this?

 

[sleepydragon]

watching a tv show called Titans. this one talks about Lee Laccoca, who saved Chrysler in the last crisis. very inspiring. He said in a speech : screw wall street journal! :)

feel like history is repeating.

unfornately I couldn't find this video on YouTube to be able to post here.

[racemize]

Even if enough sold out, Fiat said their shares would first be offered to existing shareholders and if those investors took up the offer the shares would no longer count as exit shares.

 

The outcome of the operation will be known by early October.

 

Knowing Marchionne, I would not be surprised if this was a done deal now.

 

If more wanted to exit, maybe Fiat would just offer these shares at market and cover the difference?

;)

 

so he's saying someone ought to be willing to buy those shares at above the current market price. I think that's a bullish hint?

 

on the call, he said if the 500 million were breached, the deal is off.  He literally addressed everyone considering the arbitrage, and said not to try to play games with it.  I certainly am for the vote--it is in the best interest of the company, and I am not willing to vote against the correct outcome for a small gain.

[racemize]

I believe it will fail if more than 55% of the no votes convert, ignoring any of the weirdness implied by the article.

[merkhet]

Even if enough sold out, Fiat said their shares would first be offered to existing shareholders and if those investors took up the offer the shares would no longer count as exit shares.

 

The relevant language from the F-4:

(http://www.sec.gov/Archives/edgar/data/1605484/000119312514260113/d704286df4.htm)

 

The shares with respect to which cash exit rights have been exercised will be offered by Fiat before the Merger becomes effective to its then existing shareholders. Subsequently, if any such shares remain unsold, they may be offered on the market for no less than one trading day. Completion of the share offer and sale procedure, as well as payment of any cash exit right due pursuant to applicable law will be conditional on the closing of the Merger.

 

Note the actual language of the closing condition:

 

the amount of cash, if any, to be paid to Fiat shareholders exercising cash exit rights under Italian law and/or to creditors pursuant to creditor opposition rights proceeding under Italian and Dutch law does not exceed, in the aggregate, €500 million.

 

I suspect that this means that Exor could purchase the exiting shares such that there is no tripping of the closing condition -- though that may be a moot point since such closing condition could be waived if required -- my guess is that Marchionne is just taking a hard line to dissuade cash exits.

 

yes. if u don't vote, your broker vote for you, I think. if u didn't go to the meeting, u won't get the special voting shares. but those special shares has no dollar values.

 

Not true! Read the F-4.

 

Immediately after the closing of the Merger, Fiat shareholders that (i) were present or represented (by proxy) at the relevant extraordinary general meeting of Fiat, regardless of how they vote, (ii) timely and properly submitted (through their relevant depository intermediaries) the election form and the power of attorney and (iii) continued to own the relevant Fiat ordinary shares continuously during the period between the record date preceding the applicable extraordinary general meeting and the effective date of the Merger will have their FCA common shares registered in the Loyalty Register. Following such registration, a corresponding number of special voting shares will be allocated to the holders of the FCA common shares, so that the additional voting rights can be exercised at the first FCA shareholders’ meeting following the registration.

 

You don't have to go to the meeting -- you could have voted by proxy.

[Phaceliacapital]

Even if enough sold out, Fiat said their shares would first be offered to existing shareholders and if those investors took up the offer the shares would no longer count as exit shares.

 

The relevant language from the F-4:

(http://www.sec.gov/Archives/edgar/data/1605484/000119312514260113/d704286df4.htm)

 

Thanks, I think it's a done deal.

[peter1234]

I suspect that this means that Exor could purchase the exiting shares such that there is no tripping of the closing condition -- though that may be a moot point since such closing condition could be waived if required -- my guess is that Marchionne is just taking a hard line to dissuade cash exits.

 

+1

 

Even if they all wanted cash, it would be a small sum for Exor at less than 500M.

[merkhet]

I suspect that this means that Exor could purchase the exiting shares such that there is no tripping of the closing condition -- though that may be a moot point since such closing condition could be waived if required -- my guess is that Marchionne is just taking a hard line to dissuade cash exits.

 

+1

 

Even if they all wanted cash, it would be a small sum for Exor at less than 500M.

 

I would personally prefer that Fiat buy back the shares over Exor, since that benefit would accrue to the remaining shareholders, but either way, I don't think this is an issue. As others have said, it's likely a done deal.

[sleepydragon]

watching a tv show called Titans. this one talks about Lee Laccoca, who saved Chrysler in the last crisis. very inspiring. He said in a speech : screw wall street journal! :)

feel like history is repeating.

unfornately I couldn't find this video on YouTube to be able to post here.

 

I finally was able to find the video. Highly recommended. How Lee saved Chrysler. Sergio Marchionne is in it too:  http://www.hulu.com/watch/296813

 

Also, the book of Iacocca:

http://www.amazon.com/Iacocca-An-Autobiography-Lee/dp/0553251473/ref=pd_bxgy_b_img_y

 

 

[sleepydragon]

http://chinadigitaltimes.net/space/Guo_Meimei

 

Guo meimei, who almost single handed destroyed red cross in china, drives a Maserati

 

[Phaceliacapital]

Down 7.2% on heavy volume, no news??

[Phaceliacapital]

http://www.bloomberg.com/news/2014-08-05/china-government-raids-mercedes-s-shanghai-offices.html

 

Chrysler Group LLC cut the prices of two Jeep models from and reduced prices of 145 components by 20 percent as a response to antitrust investigations by Chinese regulators, the official Xinhua News Agency reported today, without saying where it got the information.

[Phaceliacapital]

Stock is getting played:

 

 

[phil_Buffett]

someone tries everything to bring this stock down. absolutely amazing. the share Price Action the last months are a joke. the assets are at least a double right now. iam Holding my Shares!!!

[karthikpm]

Anyone adding at these prices? I suspect this will go on till listing in NYSE

[Phaceliacapital]

Screen

[karthikpm]

http://www.fiatspa.com/en-US/media_center/FiatDocuments/2014/Agosto/Fiat_provides_update_on_exercise_of_cash_exit_rights.pdf

 

All this is related to cash exit

 

Any predictions on what the probability is and what happens if the 500 million threshold is exceeded for cash exit rights?

[hillfronter83]

http://www.fiatspa.com/en-US/media_center/FiatDocuments/2014/Agosto/Fiat_provides_update_on_exercise_of_cash_exit_rights.pdf

 

All this is related to cash exit

 

Any predictions on what the probability is and what happens if the 500 million threshold is exceeded for cash exit rights?

 

I read this from Bloomberg:

 

Fiat Denies Speculation on Chrysler Merger Opt Out

• North Square Blue Oak Event Driven analyst Alex Olvera says likely EU500m

amount available to cash out dissenters may have not been breached

• Following talk with Chrysler, Olvera says company cited Fiat CEO comment

that it will not waive the max. amount condition of EU500m and if it is breached merger will be called off Co. would relaunch merger with a lower withdrawal price (based on 6-mo. avg.)

• Last month, Equita said establishment of a cap creates a classic prisoner’s dilemma; had said Fiat has all the interest stock price will not fall significantly below threshold

 

[peter1234]

Fiat is “aware of certain market rumors suggesting that it has received a significant volume of notices to exercise the cash exit rights,” tied to the merger, the carmaker said in a statement. “These rumors are groundless.”

 

1 day to fulfill all the exit requirements and transmit to Fiat sounds impossible.

???

[wachtwoord]

Fiat is “aware of certain market rumors suggesting that it has received a significant volume of notices to exercise the cash exit rights,” tied to the merger, the carmaker said in a statement. “These rumors are groundless.”

 

1 day to fulfill all the exit requirements and transmit to Fiat sounds impossible.

???

 

What do you mean 1 day?

[brker_guy]

 

The U.S. Is Becoming a Nation of Jeeps

 

http://www.businessweek.com/articles/2014-08-05/jeep-now-sells-more-cars-than-kia-and-dodge#r=rss

 

[rjstc]

Anyone adding at these prices? I suspect this will go on till listing in NYSE

 

For what little it's worth I doubled my holdings today. Small potatoes compared to most on this board but I think it's good over 1-3 years.

[peter1234]

Fiat is “aware of certain market rumors suggesting that it has received a significant volume of notices to exercise the cash exit rights,” tied to the merger, the carmaker said in a statement. “These rumors are groundless.”

 

1 day to fulfill all the exit requirements and transmit to Fiat sounds impossible.

???

 

What do you mean 1 day?

 

The shareholder meeting and vote was on Friday.

 

So for the rumor to be true, investors would have had to fill out all the forms with the required info and submit to Fiat on Monday (1 working day).

 

Unless they spent the weekend filling out forms as well... which would make is 3 days.

;D