sees New York stock market listing on October 13
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[August 30, 2014]
By Paolo Biondi
RIMINI Italy (Reuters) -
Fiat-Chrysler aims to list shares in the newly merged
carmaker in New York on Oct. 13, Chief Executive Sergio
Marchionne said on Saturday, adding that a decision on
any capital increase would be made at the end of that
He was speaking a day after the merger between Fiat and its U.S unit
Chrysler cleared its last remaining hurdle.
Fiat bought out Chrysler at the start of 2014 and both operate as
one firm. Marchionne wants to incorporate the two into
Dutch-registered entity Fiat Chrysler Automobiles (FCA), paving the
way for the U.S. listing he says is needed to help finance a
48-billion euro ($64 billion) five-year growth plan.
"The most likely date for the listing in the U.S. is October 13," he
told reporters on the sidelines of a meeting in Rimini.
Marchionne is counting on the merger and the listing to help pay for
a relaunch of its Alfa Romeo and Maserati brands, export Jeeps
globally, and take all three to fast-growing Asian markets, where
the group is currently weak.
Marchionne said the five-year business plan for the world's No. 7
auto group presented in May did not envisage a cash call.
"But all decision on any capital increase will be taken by the board
of FCA at the end of October," he said. He also confirmed the
group's full-year guidance for 2014, adding the U.S. market was
going "incredibly well."
Targets to grow net profit five-fold and sales by 60 percent within
five years look ambitious, some analysts say, arguing that the
company will have to raise capital to achieve them.
Fiat had 18.5 billion euros of cash at end-June, but almost 32
billion in debt. Its financing costs are high and margins are
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Fiat had so far ruled out asset sales and a share issue, but may go
for a mandatory convertible bond. Marchionne had previously said any
decision on financing would only be taken after FCA was created.
The merger plan could have failed if the carmaker had been asked to
pay more than 500 million euros ($658 million) to dissenting
investors who tendered their shares, exercising a legal right
triggered by Fiat's decision to move its registered offices away
Fiat said on Friday it was finishing a count of shares for which
cash exit rights had been validly exercised, but it could already
say that the 500 million euro limit would not be exceeded, based on
data calculated so far.
It plans to publish the final count by Sept. 4.
(Writing by Silvia Aloisi, editing by Louise Heavens)
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