Fiat Chrysler Automobiles NV (FCAU) Stock Surges on Takeover Talk

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Fiat Chrysler Automobiles NV (NYSE:FCAU) stock was on the rise today following news of a takeover bid.

Fiat Chrysler Automobiles NV (FCAU) Stock Surges on Takeover Talk

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According to reports, Fiat Chrysler Automobiles NV has rejected a takeover offer from a Chinese car company. The identity of the company making the bid is unknown, but its offer was a slight premium over FCAU stock’s value.

While Fiat Chrysler Automobiles NV turned down this offer, there are reportedly other Chinese companies that have an interest in it. Reports claim that several executives from different companies in the country have been working on a possible deal to acquire FCAU.

One unnamed source claims that a deal will include the Chrysler, Dodge and Fiat, but not Maserati and Alfa Romeo. The current talk claims that FCAU is planning to spin Maserati and Alfa Romeo off into their own company.

China’s automakers are showing an interest in Fiat Chrysler Automobiles NV due to pressure from the government. This includes having these companies expand to the United States. FCAU is an attractive acquisition due to the Jeep and Ram brands. It has also been up for sale for roughly two years now, reports Automotive News.

If Fiat Chrysler Automobiles NV decides to not sell itself to a Chinese company, then it will likely spin off more of its business. This includes possibly combining the Jeep and Ram brands into their own company. It already did this with Ferrari in 2015 and the stock has been performing well.

FCAU stock was up 8% as of noon Monday and is up 37% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/08/fiat-chrysler-automobiles-nv-fcau-stock/.

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