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Fiat Chrysler shares get a boost after revised Stellantis merger deal with PSA

MILAN — Shares in Fiat Chrysler (FCA) rose sharply in Milan on Tuesday after the car maker and French partner PSA revised the terms of their merger deal, with FCA's shareholders getting a smaller cash payout but a stake in another business. FCA and PSA, which last year agreed to merge to give birth to Stellantis, the world's fourth largest car manufacturer, said late on Monday they had amended the accord to conserve cash and better face the COVID-19 challenge to the auto sector. Milan-listed shares in Fiat Chrysler rose almost 8% by 1000 GMT, while PSA gained 1.5%. Under the revised terms, FCA will cut from 5.5 billion euros ($6.5 billion) to 2.9 billion euros the cash portion of a special dividend its shareholders are set to receive on conclusion of the merger. However, PSA will for its part delay the planned spinoff of its 46% stake in car parts maker Faurecia until after the deal is finalized. That means all Stellantis shareholders — and not just the current PSA investors - will get shares in a company which has a market value of 5.8 billion euros. Based on Stellantis' 50-50 ownership structure, FCA and PSA respective shareholders will each receive a 23% stake in Faurecia. Analysts welcomed the 2.6 billion euros in additional liquidity for Stellantis' balance sheet as well as the increase in projected synergies to more than 5 billion euros from 3.7 billion. There was also further reassurance as the two companies confirmed they expected the deal to close by the end of the first quarter of 2021. "All told, the two players emerge as winners," broker ODDO BHF said in a note. "Of the two, FCA might be a bit more of a winner in the short term given the structure of the deal and the numerous payouts to shareholders to come in the quarters ahead (potentially close to 5 billion euros versus the current capitalization of around 16 billion euros)." The special dividend for FCA shareholders had proved contentious after Italy offered state guarantees for a 6.3 billion euro loan to the company's Italian business. "These announcements should, at last, end the debate over the financial terms of the merger, which had become a big topic and was still penalizing the two groups' share performances," ODDO BHF said. PSA and FCA said they would consider paying out 500 million euros to shareholders in each firm before closing or else a 1 billion euro payout to Stellantis shareholders afterwards, depending on market conditions and company performance and outlook.

Investors want answers about Marchionne’s final days

The mystery of Sergio Marchionne's surprise death last week continues, with investors now questioning the timeliness of disclosures by the company and family. Bloomberg reports that Italy's market regulator is making a routine check into how Fiat Chrysler handled communications regarding his illness. Fiat Chrysler's stock is down 12 percent in both Italy and on the New York Stock Exchange since the announcement of Marchionne's death. University Hospital Zurich last week issued a statement saying that Marchionne, who died July 25 while recovering from an unspecified should surgery, had been treated for more than a year for a serious illness that it didn't define. Marchionne's family told Reuters the companies hadn't been aware of his health conditions. The Italian business website Lettera 43 reported July 5, and FCA later confirmed, that Marchionne had undergone shoulder surgery in a Swiss hospital. But the company later denied a July 20 report by the website that Fiat Chairman John Elkann planned to meet with company leaders to divide Marchionne's responsibilities. Yet the FCA board indeed met on July 21 and chose Mike Manley, who had formerly overseen the Jeep and Ram brands, to succeed Marchionne as CEO. The company on July 25 published a brief statement acknowledging the former CEO's death. "Unfortunately, what we feared has come to pass. Sergio Marchionne, man and friend, is gone," Elkann said in the statement. Marchionne told no one outside his inner circle — reportedly not even Elkann — that he was seriously ill. His partner, Manuela Battezzato, who works in Fiat's press department, told Bloomberg that Marchionne's family didn't tell the company about his health condition. The famously hard-working CEO, who had quit smoking about a year ago, had also reportedly stopped responding to messages and calls from some advisors since the end of June. People close to him told Bloomberg that Marchionne died from complications following the shoulder surgery, including two cardiac arrests. Image Credit: Ferrari flags hang at half-staff at the Hungarian Grand Prix / Getty Chrysler Fiat Sergio Marchionne

Pair of 1970 Plymouth Superbird barn finds hits eBay

Here are a couple noteworthy barn finds for sale right now on eBay: a pair of 1970 Plymouth Superbird muscle cars, found with their giant rear wings, retractable headlights and 440 Super Commando V8s apparently perfectly intact after being stored for decades in a garage in Maine, with their condition reportedly "very good for 40 years of dry storage." In his lengthy writeup, the seller notes the short-lived, modified Road Runner is "One of the most collectible muscle cars with one of the most incredible automotive Aerodynamic (sic) designs in automotive history." The Superbird, which saw only one production year, is approaching its 50th anniversary, with their values expected to soar, he notes. The seller explains that he learned about the Superbirds after he purchased his own blue Superbird from the Owls Head Transportation Museum auction in Maine in August for $187,000. "Just after I won the blue 1970 Super Bird with white bucket seat interior a man approached me and sat down next to me and stated he has 2 Super Birds in storage that he has owned for the last 40 years," he wrote on his listing. "He told me he purchased them from the original owners." One was B5 blue with white bucket seats, just like the one he'd just purchased. The other was Alpine White with black bucket seats. According to the back story, both cars were originally sold off the lot in 1970 at Blouin Chrysler Plymouth Dodge in Augusta, Maine, and the man who'd been keeping them in his garage said he knew both of the original owners, having purchased both cars from them around 1978. The man, who is reportedly a Mopar expert, kept them both registered until 1985 and 1987, with the registration stickers still intact on the windshields, then prepared both for storage, putting straight antifreeze in the motors and filling the cylinders with lubricating oil. Both cars are currently being stored in a garage in Massachusetts. The Alpine White Superbird has 42,497 miles on it. The highest of 84 bids as of this writing was $135,000. The blue version has just 27,416 miles on the odometer, with the highest of 93 bids at $151,100. Both were updated with Pioneer cassette decks that the seller says "are classics in themselves." The seller also notes he hasn't tried to get either car started but that both motors turn freely and that the head and taillights all work. Bidding ends Sept. 27.