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Chief Executive Sergio Marchionne wants to
incorporate the two carmakers into a Dutch-registered company
called Fiat Chrysler Automobiles (FCA), paving the way for a
U.S. stock market listing that would help fund an ambitious
investment plan.
But it could fail if the carmaker were asked to pay more than
500 million euros ($658 million) to investors who decide to sell
their shares, exercising a legal right triggered by Fiat's
decision to move its registered offices away from Italy.
Fiat said 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.
"Fiat has determined that even if all remaining unmatched
notices and unmatched confirmations were to be matched, the
maximum number of shares for which cash exit rights have been
validly exercised will yield an aggregate exposure that is below
the cap," it said in a statement.
It plans to publish the final count by Sept. 4.
Investors had until Aug. 20 to tell Fiat whether they planned to
cash in on their exit rights.
The merger of Fiat and Chrysler, which already operate as a
single company, was approved by shareholders at the start of
August but dissenting investors had a right to sell their shares
for an exit price of 7.727 euros.
"The Fiat statement puts to rest rumors that have been doing the
rounds since the start of this month ... and ensures the merger
process with Chrysler will turn out well," Italian broker ICBPI
said.
At 0850 GMT, Fiat shares were up 1.3 percent, outperforming the
Italian benchmark share index.
Marchionne said previously that if a critical mass of investors
were to breach the cap, he would start the merger process again
- effectively meaning a delay of several months.
"I am reassured by the fact that the vast majority of our equity
holders have remained loyal and committed shareholders,"
Marchionne said in the statement on Friday.
Fiat said it did not expect creditor opposition to stand in the
way of a timely closure of the merger. Creditors, including
bondholders, have until Oct. 4 to submit objections.
(1 US dollar = 0.7594 euro)
(Editing by Tom Pfeiffer)
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