Fiat Chrysler Automobiles NV (NYSE: FCAU) is having an incredibly strong start to the trading session today, and for good reason. News broke that the company has received a buyout offer. Of course, potential buyouts are always exciting to investors, and this one is no different. As is usually the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:19), FCAU is trading at $12.44 per share after a gain of $0.84 per share or 7.19% thus far today.
FCAU Gains On Buyout Offer
As mentioned above, Fiat Chrysler is having an incredibly strong time in the market today after announcing that it has received a buyout offer. While the source of the buyout offer was not disclosed, we do know that the offer came from a “well-known Chinese automaker”. The company said that the automaker made at least one offer to buy FCAU this month at a small premium over its market value. However, the offer was rejected because of the low premium offered.
It is said that last week, management at the large Chinese automaker firm conducted due diligence on the potential purchase of FCAU and met last week with members of United States retail groups with regard to the potential acquisition. Also, the talks are ongoing as FCAU executives have been traveling to China to meet with Great Wall Motor Co. and Chinese delegations were seen last week at the Fiat Chrysler headquarters.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on FCAU. While the first buyout offer has been turned down because of the low premium, the company is still in talks with the Chinese automaker and a buyout is likely in the future. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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