June 15--Fiat said Sunday that its board of directors approved the "cross border merger terms" that will allow the Italian automaker to become a subsidiary of Fiat Chrysler Automobiles N.V., a new company that will be organized in the Netherlands.
The approval by Fiat S.p.A.'s board of the terms of the plan, developed by Fiat and Chrysler CEO Sergio Marchionne, is one of a number of steps necessary to create a new corporate structure with a new name for the company.
The merger plans calls for Fiat shareholders to receive one share of Fiat Chrysler Automobiles stock for each share of Fiat stock they currently hold. The stock will be listed on the New York Stock Exchange (NYSE) and on the Mercato Telematico Azionario (MTA) in Milan.
That plan must still be approved by Fiat's shareholders. A meeting for shareholders to approve the new share structure will be held during the third quarter of this year, Fiat said today. Previously, the company said that the meeting would be held this summer.
Fiat also said a prospectus for Fiat Chrysler Automobiles will be filed with the U.S. Securities and Exchange commission before the Fiat shareholder meeting this fall and said it expects to complete the transaction by the end of this year.
Fiat became the 100% owner of Chrysler in January. On Friday, Chrysler said it expanded its board of directors from nine to 13 members and named six new members, including five Fiat and Chrysler executives.
Contact Brent Snavely: 313-222-6512 or firstname.lastname@example.org. Follow him on Twitter @BrentSnavely
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