Fiat Chrysler Cars gained’t remark on a report claiming Hyundai Motor Group plans to launch a bid for the automaker, however that’s what sources with information of the matter inform the Asia Occasions.
The sources declare HMG CEO Chung Mong-koo is biding his time, ready for FCA’s inventory to fall earlier than shifting ahead on the potential takeover. Reportedly, Hyundai might launch the bid inside months.
FCA CEO Sergio Marchionne retires in April 2019, together with his successor an unknown amount presently. If Chung Mong-koo really needs a takeover, he’ll act earlier than Marchionne steps down, the sources declare.
Apparently, the driving drive behind a possible merger is Paul Singer, billionaire activist shareholder and Elliott Administration principal. Singer holds a $1 billion stake in Hyundai. His ties to FCA are extra private, nevertheless. Singer lately took management of Telecom Italia, naming Alfredo Altavilla, head of FCA’s Europe, Africa, and Center East areas, as considered one of its board members. Altavilla’s identify has been talked about as a attainable Marchionne successor.
Apparently, there’s fairly a little bit of disagreement between Marchionne and FCA chairman John Elkann over who ought to fill the CEO’s footwear. “Marchionne is pushing for [FCA CFO] Richard Palmer, whereas Elkann needs an industrial CEO to take over resembling Altavilla or [Ram/Jeep head] Michael Manley,” one FCA supply advised Asia Occasions.
The sources allege Elkann, who additionally heads Exor N.V. — an funding group managed by the Agnelli household, which holds over 29 % of FCA’s inventory — is extra all in favour of rising a media empire than controlling FCA. A merger with Hyundai would give FCA entry to the electric automobiles its truck-heavy portfolio usually lacks. (The cash-dropping Fiat 500 EV, FCA’s solely North American EV, was famously panned by a scornful Marchionne.)
Marchionne, in fact, could be very keen on looking for mergers. Potential tie-ups with Common Motors and Volkswagen Group by no means acquired off the bottom, however sources declare the CEO used curiosity from China’s Nice Wall Motor “as a stalking horse” to catch Hyundai’s eye and soften the Trump administration’s response to a future, non-Chinese language takeover.
As we stated, the automakers aren’t speaking, so we’re left ready to see if something comes of this.
[Image: Fiat Chrysler Automobiles]
– Hyundai’s Getting Ready to Pounce on Fiat Chrysler, Report Claims –
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