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Fiat to become Korean?
- Thread starter JCarp16
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Fiat to become Korean?
I wouldn't have far to travel to get to their head office anymore then 
Even the article says Hyundai are denying the merger, and it comes from the same rumour mill that had VW lined up to take over fiat a few months back
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Their share price has gone bonkers over the past fortnight though - so maybe there's some truth in it. Marchionne is also much quieter than usual. Possibly a spin-off is more likely? MM for example?
Fiat’s share price or Hyundai? Hyundai share price has increased a bit but it’s been considerably higher in the last year and it’s increasing from one of its lowest points this year, so it’s still with in its general rise and fall.
Fiat shares have been on the way up for a while, they sold off Ferrari and gave a very good deal to exsisting share holders, there have since been rumours of them selling off other parts of the business which is also expected to result in a very good deals for investors, it’s not directly attributable to any merger with hyundai.
Fiat has been searching all year to find someone to merge with so it’s more a matter of when rather than if. Fiat carry a lot of weight in the automotive world but they have been getting behind on the electric and self driving technologies, and are now desperate to try and make up ground, they don’t have the money to invest heavily and so need to merge with someone who already has there for in the door.
If they can’t find someone to merge with, then it could be very bad news for fiat.
On the other hand if they merged then they could find them self in the same position as Seat, a subsidiary of a much bigger group, churning out car after car assembled from a parts bin that all productions lines dip into.
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FCAs price. It's been at a all time high in response to these rumours. Hyundai has been stagnating in some markets and losing share in others they've got a lot of cash and haven't been coy about the fact that they want a stronger presence in the US. I don't think they're interested in the Fiat part of FCA - more likely Jeep and Ram.
https://www.forbes.com/sites/franka...at-chrysler-if-the-parts-and-price-are-right/
https://www.forbes.com/sites/franka...at-chrysler-if-the-parts-and-price-are-right/
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Not quite true, their share price has been higher in the last 5 years, when they bought up the last remaining stake in Chrysler, however since then their shares have been on the way down. Recently as I explained above, Fiat have fallen significantly behind in the technology stakes and now really really need to find a partner to take them forwards. The reason the share price is going up is because it makes a sensible investment, Fiat shares are not particularly strong and therefore if they merge with anyone they will go up further still as there will be advantages to share holders such as further share options, payouts or bonuses. So buy the shares before the merger and sell them at their peek value.
The danger with the shares carrying too much value is it pushes up the costs of any merger deal and other companies might walk away becaus of it, it’s much more cost effective to merge with a company that is not worth as much and get a deal taking over the brand names for minimal investment.
What you’ll notice is Hyundai shares are not rallying which suggests this plan would not be such a good deal for Hyundai.
It’s all irrelevant anyone, Fiat for the last few months keep setting off rumours over who they will merge with and so far they’ve been shot down by the other rumoured companies, in this case even Hyundai have said they have no plans to merge, when they rumours fiat would merge with VW, a spokesman from VW stated they hadn’t even been approached.
Prices are up it maybe a good time to buy but would be a gamble, if fiat now fail to form a merger with anyone their share price could tumble significantly. If you already have shares, it’s a bad time to sell as you may loose money if you bought them a couple of years ago or recently bought in.
All in all share prices have little to do with the performance of the company sometimes and more to do with what’s going on in the world.
A recent example being the problems in North Korea, causing American share prices to fall, this in tern damaged the share prices in Europe, but because of Brexit and the pound this had little effect on UK shares meaning that the value of the pound went up.
So all in all thanks to the orange Baffoon in the White House, I got about £10 better deal on my holiday money.
Last time I went abroad was the week after the general election, because it again crashed Uk share prices, when the exit pole came out, I bought my currency from a company online before the trading markets opened again and saved myself £80 as the value of the pound plummeted the following morning.
I keep a very close eye on these things these days, Fiat shares ago would be a good deal and I’d be selling them now, but I wouldn’t buy at the moment, as it could co horribly wrong and I’m not into taking that bigger risk.
The danger with the shares carrying too much value is it pushes up the costs of any merger deal and other companies might walk away becaus of it, it’s much more cost effective to merge with a company that is not worth as much and get a deal taking over the brand names for minimal investment.
What you’ll notice is Hyundai shares are not rallying which suggests this plan would not be such a good deal for Hyundai.
It’s all irrelevant anyone, Fiat for the last few months keep setting off rumours over who they will merge with and so far they’ve been shot down by the other rumoured companies, in this case even Hyundai have said they have no plans to merge, when they rumours fiat would merge with VW, a spokesman from VW stated they hadn’t even been approached.
Prices are up it maybe a good time to buy but would be a gamble, if fiat now fail to form a merger with anyone their share price could tumble significantly. If you already have shares, it’s a bad time to sell as you may loose money if you bought them a couple of years ago or recently bought in.
All in all share prices have little to do with the performance of the company sometimes and more to do with what’s going on in the world.
A recent example being the problems in North Korea, causing American share prices to fall, this in tern damaged the share prices in Europe, but because of Brexit and the pound this had little effect on UK shares meaning that the value of the pound went up.
So all in all thanks to the orange Baffoon in the White House, I got about £10 better deal on my holiday money.
Last time I went abroad was the week after the general election, because it again crashed Uk share prices, when the exit pole came out, I bought my currency from a company online before the trading markets opened again and saved myself £80 as the value of the pound plummeted the following morning.
I keep a very close eye on these things these days, Fiat shares ago would be a good deal and I’d be selling them now, but I wouldn’t buy at the moment, as it could co horribly wrong and I’m not into taking that bigger risk.
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Currently they're 17.54 - they were closer to 18 a week or so ago - that's the highest they've been in 5 years. However - I agree - it would be a surprise if they remained at that level as they were chugging along between 9 and 11 more recently - and buying right now would be quite a risk. Ferrari would've been a better investment when they originally came on the market - they were around $50 a share - they are now more than double that.
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https://www.reuters.com/article/us-...arelli-separation-next-year-ceo-idUSKCN1C71KB
Looks like a spin-off of Magnetti Marelli is on the cards.
Looks like a spin-off of Magnetti Marelli is on the cards.
I seem to remember that being discussed about a month or two ago.
Puts fiat in an awkward position as they want the new technologies, electric and self driving cars, yet Magnetti Marelli is the part of the fiat business that provides this sort of tech as well as most of fiat’s Electronics and other components, it would put fiat in a position of having to buy things in, that said it opens up their choice to use other manufacturers of components more freely
Puts fiat in an awkward position as they want the new technologies, electric and self driving cars, yet Magnetti Marelli is the part of the fiat business that provides this sort of tech as well as most of fiat’s Electronics and other components, it would put fiat in a position of having to buy things in, that said it opens up their choice to use other manufacturers of components more freely
