"Vandelay Industries" (jerrycostanza)
07/17/2014 at 08:27 • Filed to: None
3
2|
"Vandelay Industries" (jerrycostanza)
07/17/2014 at 08:27 • Filed to: None | 3
| 2 |
!!! UNKNOWN CONTENT TYPE !!!
Fiat Shares Jump on VW Merger Talks Report -WSJ
Fiat Denies Discussions Have Been Held With VW Over a Potential Merger
By
Shares in
Fiat SpA jumped early Thursday after a German business magazine reported the controlling families of the Milan-listed auto maker had discussed a tie-up with the families that control Volkswagen AG, Europe's biggest car maker by sales.
Fiat denied that any discussions had been held with Volkswagen regarding a potential merger. A spokesman for VW declined to comment. Fiat shares rose nearly 4% in early Thursday trading. VW shares fell more than 1%.
The families that control the two auto makers are in talks about merging the two car companies, according to Thursday's pre-release of an article to appear in the German monthly business magazine Manager Magazin.
The magazine reports in an article scheduled to appear on Friday that
Ferdinand Piech, one of !!!error: Indecipherable SUB-paragraph formatting!!! , has held talks about a merger with representatives of the Elkann and Agnelli families that control Fiat.
A spokesman for
Exor SpA, the holding company through which the Agnelli family controls Fiat, denied the clan is in takeover talks with the controlling family of Volkswagen.
Two other people familiar with the situation also said there are no talks. One person points out that the Agnelli family chose to incorporate Fiat Chrysler Automobiles— !!!error: Indecipherable SUB-paragraph formatting!!! in the Netherlands to exploit Dutch law regarding nonvoting shares. Those rules will make it easier for the Agnelli family to continue to control FCA.
!!! UNKNOWN CONTENT TYPE !!!
According to the German report, the current Fiat shareholders are considering pulling out of volume automobile manufacturing and focusing instead on the Ferrari sports car brand. The magazine said that talks are now focused on Chrysler.
According to the magazine, VW sees Chrysler as an opportunity to become a significant player in the U.S. market.
The German auto maker has struggled recently !!!error: Indecipherable SUB-paragraph formatting!!!
!!! UNKNOWN CONTENT TYPE !!!
The magazine said there are still obstacles to a deal, such as different perceptions about price. FCA CEO
Sergio Marchionneis also pursuing other strategic options, the magazine reported.
In May, Fiat unveiled an ambitious five-year plan to boost its car sales by 60% by 2018. Under the leadership of Mr. Marchionne, the car maker engineered a takeover of Chrysler, whose strong performance has helped Fiat balance deep !!!error: Indecipherable SUB-paragraph formatting!!! .
!!! UNKNOWN CONTENT TYPE !!!
mr_gofast
> Vandelay Industries
07/17/2014 at 08:31 |
|
hm if that were to happen a whole bunch of model lines on both sides would have to be cut..There would be so much competition in house it would be unpractical. These alone could possibly outweigh any synergies that would of occurred.
mcseanerson
> Vandelay Industries
07/17/2014 at 08:56 |
|
So by the sounds of it this is the same deal that was made with GM a bit back. Maybe they're hoping for another win and getting $2 billion not to purchase them. Also seems like Ferrari will not be included.