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'Fiat to list on NYSE, with British tax home'

Marchionne basing move on CNH Industrial, says WSJ

27 January, 14:29
'Fiat to list on NYSE, with British tax home' (ANSA) - New York, January 27 - Fiat's CEO is set this week to propose to the board listing on the New York Stock Exchange the new group being created by the Italian automaker's takeover of American carmaker Chrysler, and giving it a British tax home, according to the Wall Street Journal. Citing people familiar with the plans, the financial daily said Sergio Marchionne's proposal on the tax home would mirror the direction taken last year by Fiat's sister company, CNH Industrial, which he chairs. The Journal said the move would help him avoid making the politically difficult choice between Italy and the US as the headquarters for the new group, and could allow the company to pay less tax on dividends. Marchionne is also expected to propose New York as the primary market for listing the group's stock. He strongly suggested in a press conference earlier this month that Fiat-Chrysler would seek a US stock listing, giving it greater access to capital than in Milan, where Fiat's stock is currently listed. The Turin-based group finalized the deal to take full possession of Michigan-based Chrysler on January 21. The transaction, worth $4.35 billion, came after more than a year of negotiations between Fiat and the United Autoworkers (UAW) healthcare trust VEBA.

Fiat was determined to acquire the 41.46% share of Chrysler that VEBA received as part of a plan in 2009 that rescued the ailing American automaker from bankruptcy and gave Fiat majority ownership.

Under the new deal, Fiat and Chrysler will together pay out $3.65 billion in cash to VEBA, while Chrysler has agreed to pay the trust an additional $700 million over the next three years.

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