P&A Providers & Administrators
MenuMENU
SearchSEARCH

Fiat May Sell Up To $1.04B In Stock With U.S. Listing

September 4, 2014
3 min to read


Fiat SpA may sell as much as $1.04 billion in shares to reduce debt and gain local investors after the carmaker formed from merging with Chrysler Group LLC lists stock in the U.S., according to Bloomberg News calculations, reported The Detroit News.


The company may have as many as 104.2 million shares available for sale when the newly created Fiat Chrysler Automobiles NV starts New York Stock Exchange trading later this year, based on cash-exit rights investors have exercised and earlier plans to dispose of treasury stock. At the current share price, that would be valued at 801 million euros ($1.04 billion).

Ad Loading...


Chief Executive Officer Sergio Marchionne is combining Turin, Italy-based Fiat with its U.S. division to establish a manufacturer with the scale to compete with auto-industry leaders such as General Motors Co., Volkswagen AG and Toyota Motor Corp. Marchionne told Bloomberg News on Aug. 30 that stock submitted by shareholders who don’t want to be part of the merged company will probably be sold following the shift to U.S. trading “to create liquidity.”


Investors withdrawing from Fiat prior to the merger submitted 60 million shares, valued at about 463.6 million euros at the exit price of 7.727 euros a share, the company said today.


The stock will be offered to other Fiat shareholders at that price for about a month starting tomorrow, after which the carmaker will buy any shares that are unsold. Investors owning Fiat stock as of Sept. 9 will be eligible to buy one exit-program share for every 19.35 already held, Fiat said in a separate statement.


The buyout value was 7.3 percent less than the 500 million euros that Fiat had budgeted. Fiat’s stock reached a low for this year in early August amid investor concern that the cap would be exceeded, delaying the transaction.


Marchionne said in June that Fiat also plans to sell the stock it holds in treasury. That amounts to a little less than 44.2 million shares, or 3.5 percent of the total.

Ad Loading...


Fiat rose 1.4 percent to 7.69 euros at the close Thursday in Milan, the highest price since July 25. The stock has gained 29 percent this year, valuing the carmaker at 9.6 billion euros. Fiat declined to comment on the potential stock-sale figure.


Shares in Fiat will be converted on a one-to-one basis to Fiat Chrysler stock when the listing shifts to New York. Marchionne said last week that U.S. trading may begin as early as Oct. 13. Fiat Chrysler will set up its headquarters in London.


The merged company’s new board will meet in late October and evaluate its capital structure, including weighing whether to sell new shares.


Marchionne said last week that he “learned a lot” from the creation of CNH Industrial NV, the truck and tractor company that separated from Fiat in 2011 and moved its listing to New York last year.


“The problem with the U.S. market is that there is no liquidity in CNH, so we need to fix that” for Fiat Chrysler, he said.

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →