Mad Hatter Posted June 20, 2015 Share Posted June 20, 2015 http://www.freep.com/story/money/cars/chrysler/2015/06/18/fiat-chrysler-fca-marchionne-gm-general-motors-merger/28853709/ 2. Talk of a hostile takeover of GM. Max Warburton, a respected analyst who has watched Marchionne closely for years, issued a research note last week raising the possibility of Marchionne launching a hostile takeover bid for GM. Warburton breaks it down this way: "The mechanics of such a bid look ambitious – in fact, they are without precedent. Selling it to shareholders, unions and anti-trust authorities would be hugely complex. But stranger things have happened." Even though FCA is a smaller company and is carrying a lot of debt, Warburton said, "We believe it's necessary to start taking this idea more seriously." Mergio is hell-bent on a shotgun wedding, but I'm not seeing this. What do y'all think? Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted June 20, 2015 Share Posted June 20, 2015 (edited) Wait. WHAT? LOOK AT SOME OF THESE REASONS WHY THIS DEAL SHOULD BE TAKEN SERIOUSLY: 1. The companies are taking it seriously. ... GM CEO Mary Barra has publicly and privately rejected Marchionne's overtures. 3. Marchionne's e-mail. Marchionne sent Barra an e-mail earlier this year in which he presented the case for the two automakers combining resources. Barra rejected that e-mail. 4. Greenlight Capital's purchase of a lot of stock. David Einhorn's Greenlight Capital bought nearly 9.5 million shares over the first three months of this year, making it one of GM's largest shareholders. A spokesperson for Einhorn declined to comment on the reason behind Greenlight's decision to purchase more GM shares. 6. Marchionne is right, to an extent, about consolidation. .... FCA is the most truck-heavy automaker in the U.S. and is close to last among major automakers for sales of electric and hybrid cars. Other automakers are farther along on these issues I don't know what Snavely's thinking here. Reasons 1 & 3 are, in fact, reasons NOT to take this deal seriously, reason 4 is completely irrelevant and reason 6 provides absolutely NO reason for GM to ever consider consolidation w/Fiat. -- Regarding the possibility of a hostile takeover: The only way FCA can takeover GM is by a leveraged buyout, and FCA is so stupendously overleveraged as it is, no bank would ever consider financing a takeover attempt launched by FCA. Edited June 20, 2015 by RichardJensen Quote Link to comment Share on other sites More sharing options...
Mad Hatter Posted June 20, 2015 Author Share Posted June 20, 2015 I agree. It seems the only rationale is the analyst's "stranger things have happened" line. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted June 20, 2015 Share Posted June 20, 2015 Sabre rattling by Sergio, the fact that he's appealing to GM stock holders in public shows that he has almost zero traction in getting this deal-merger-hostile take over anywhere near the table. In the end, Sergio will be forced to take what he can get. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted June 20, 2015 Share Posted June 20, 2015 I seriously feel bad for Chrysler... They been used and abused by the companies that took them over the past 15 years. I wonder if they'll even exist in the next five years. Quote Link to comment Share on other sites More sharing options...
twintornados Posted June 20, 2015 Share Posted June 20, 2015 This is insanity, plain and simple...the ONLY reason he wants a merger is so that he can get his hands on GM's pile of cash....he doesn't care one bit about consolidation...if he did care, he would attempt a tie-up with Ford or Nissan. Quote Link to comment Share on other sites More sharing options...
RangerM Posted June 20, 2015 Share Posted June 20, 2015 "Reason 7. Greece will underwrite it." 2 Quote Link to comment Share on other sites More sharing options...
twintornados Posted June 20, 2015 Share Posted June 20, 2015 "Reason 7. Greece will underwrite it." He'll probably promise them a production facility if they do... Quote Link to comment Share on other sites More sharing options...
jpd80 Posted June 22, 2015 Share Posted June 22, 2015 I think they should do it.... Ford and Toyota should sit back and watch the fireworks... Quote Link to comment Share on other sites More sharing options...
4d4evr-1 Posted June 22, 2015 Share Posted June 22, 2015 This is insanity, plain and simple...the ONLY reason he wants a merger is so that he can get his hands on GM's pile of cash....he doesn't care one bit about consolidation...if he did care, he would attempt a tie-up with Ford or Nissan. not Ford with the Ford family owning 40% of voting stock Quote Link to comment Share on other sites More sharing options...
J-150 Posted June 22, 2015 Share Posted June 22, 2015 not Ford with the Ford family owning 40% of voting stock And Nissan under the thumb of Ghosn. GM is one of only a few with money that isn't controlled by a family or another egomaniacal tyrant. Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted June 22, 2015 Share Posted June 22, 2015 (edited) not Ford with the Ford family owning 40% of voting stock FYI: They own all of the Class B shares which carry 40% of the votes. Class B shares are, IIRC, only about 5% of the total float. In short: 95% of the stock has 60% of the vote, 5% of the stock has 40% of the vote. Also, if Class B stock is sold outside the Ford family, it becomes Class A stock. Edited June 22, 2015 by RichardJensen Quote Link to comment Share on other sites More sharing options...
Fgts Posted June 23, 2015 Share Posted June 23, 2015 I don't see a deal. I said before I hope a Wall St company will buy the Chrysler part of FCA and get the Italian blood-suckers off. Quote Link to comment Share on other sites More sharing options...
J-150 Posted June 23, 2015 Share Posted June 23, 2015 I don't see a deal. I said before I hope a Wall St company will buy the Chrysler part of FCA and get the Italian blood-suckers off. Cerberus redux Quote Link to comment Share on other sites More sharing options...
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