Fiat Chrysler runs on the Stock Exchange and gains 3,6% in the middle of the day, 6,422 euros taking advantage of the positive momentum that is pushing the entire Ftse Mib upwards (+2,87%).
Contributing to the upside is the rebound of the entire European auto sector, with the Euro Stoxx 600 erasing last week's losses (-5,5%), rising by 5,7%.
The FCA stock is on the rise despite the company's announcement on Friday evening: due to the coronavirus emergency, FCA has postponed the meeting scheduled for April 16. There is still no new official date - which will be communicated "as soon as possible", the group says - but according to forecasts, the meeting should be reconvened for the end of June.
Slippage has one important consequence viz “the postponement of the resolution on the 2019 ordinary dividend of 1,1 billion communicated at the time of the conclusion of the Combination Agreement with Peugeot SA”, FCA explains in a note.
It should be underlined that Peugeot (+6,35% in Paris) also communicated the postponement of its shareholders' meeting from 14 May to 25 June.
“We remain of the opinion that the most probable scenario provides for the cancellation or postponement of at least the ordinary dividend of both FCA and Peugeot (1,1 billion each). By postponing the shareholders' meeting, both companies are also taking time to better understand what the effects of the crisis are”, explain the Equita analysts.
It should be emphasized that before the wedding with Psa, Fiat Chrysler should also disburse an extraordinary coupon of 5,5 billion euros. Also in this case, postponements or revisions could therefore be announced, everything will depend on what happens in the near future and on the economic consequences of the pandemic.
