Fiat Paperwork Shuffle Results in a 9% Loss in Trading Sessions

Staff Writer
Mount Shasta Herald
Fiat shares have lost 9 percent over the last two trading sessions. Chief Executive Sergio Marchionne blamed overblown press reports and a "lack of understanding" of the Fiat-Chrysler merger for a share sell-off. Sell-off could spoil plans for merger and U.S. share listing. we detailed Fiat's plans to merge with Chrysler Fiat

However, investors have been exercising their right to sell Fiat shares, partially spurred by the Italian automaker's decision to move its headquarters from Italy -- where it's been located for 115 years -- to London.

"The press has overplayed the withdrawal rights scenario," Marchionne told analysts during a conference call. "We are paying the price for an overreaction ... based on a lack of understanding of what this means."

Fiat shares lost almost 9 percent in the last two trading sessions. Today, the shares hit their lowest value since the January 1 announcement that it was buying Chrysler outright.

The merger states that dissenting investors can sell shares for 7.727 euro, which is 20 percent higher than today's closing price of 6.47 euro.

Fiat suggested that paying out more than 500 million euros ($668 million) to dissenting shareholders and creditors would be a doomsday scenario for the merger.

Click Here: Visit the Best Ride Midnight Oil Blog

Click Here toFind Cars for Sale