Cnh rejects the merger proposal with Fiat Industrial, but the Lingotto does not give up. The CEO Sergio Marchionne is absolutely convinced "of the strategic and financial benefits" of the operation. The merger between the Italian industrial vehicle company and the Dutch subsidiary that produces agricultural and construction machinery – according to the manager – “would simplify the corporate structure of the group with the establishment of a single class of shares listed in New York and the formation of an authentic alternative, in terms of size and ability to attract investors, to the major North American companies operating in the sector”.
In the night though the Special Committee of the board of directors of CNH has established that the offer arrived from Turin is "inadequate". The company says in a note that it has "carefully evaluated the merger proposal of May 30, all available information and the opinions of consultants Jp Morgan and Lazard" and that it has judged that "the proposal was not in the best interests of CNH and its shareholders". On the other hand, the independent directors of Cnh had already expressed perplexity about the share swap proposed by Turin (3,9 shares of Fiat Industrial for one of Cnh).
Fiat Industrial responded by asking its advisors to meet with those of the CNH Special Committee. The goal is to evaluate whether an agreement is possible on the basis of new terms and conditions, taking into account the need to maintain an appropriate rating for the group, to attract a wider range of international investors and to constitute an adequate basis from which to pursue future growth opportunities.
This morning in Piazza Affari, the Fiat Industrial share lost more than one percentage point.
