New fears cropped up Wednesday concerning the creation of Fiat Chrysler Automobiles, the London-based combination of Italy's Fiat and Detroit's Chrysler Group.
Even though Fiat shareholders overwhelmingly cleared the way for the merger of Fiat its new corporate entity registered in the Netherlands Friday ande based in London, dissenting shareholders could exercise their right to cash out under Italian law. The concern is that the payouts could exceed a 500 million Euro, or $669.9 million, cap.
If the deal goes through, Fiat Chrysler Automobiles shares would be traded on the New York Stock Exchange.
CEO Sergio Marchionne, addressing the issue to analysts and reporters Wednesday, said the equity markets are performing "strangely" and that fears are overblown in the media. Though he says the cap is "absolute," he says he is "unfazed by all of this." At worst, the merger, he says, can be done at another time.
Trading in Fiat shares was temporary suspended Wednesday on the exchange in Milan amid concerns the merger could be blocked.
Fiat shares slid 7% to 6.34 euros ($8.47) in Milan trading.