Fiat Industrial SpA said it might increase its offer to buy out minority shareholders of CNH Global. Fiat, which also owns Iveco trucks and engines, said it remained committed to the deal after a special committee set up by CNH’s board rejected Fiat’s offer. Fiat owns about 88 percent of CNH’s shares.
The company is registered in the Netherlands, and under Dutch securities laws a majority shareholder has to own at least 95 percent of a company’s stock to oust minority shareholders.
Fiat Industrial chairman Sergio Marchionne said he hopes that combining CNH — which owns Case IH and New Holland — with Fiat Industrial would make its stock more attractive, improve the stock’s liquidity and strengthen the company’s access to credit markets. The company would then have its primary stock listed on the New York Stock Exchange, with a secondary listing in Europe.
CNH Global said its committee rejected the offer unanimously as inadequate.
