REFILE-Fiat Industrial shares fall after CNH rejects merger terms

Mon Oct 15, 2012 3:39am EDT

MILAN Oct 15 (Reuters) - Shares in Italy's Fiat Industrial fell on Monday after its U.S. unit CNH said it rejected the terms of a proposed merger between the two companies.

The Italian truck and construction equipment maker, spun off from automaker Fiat in 2011, was seeking a merger with its 88 percent-owned tractor subsidiary to compete more effectively with heavy equipment maker Caterpillar and other peers in both scale and investor appeal.

Fiat Industrial had aimed to win approval from the U.S. farm equipment maker's board on Oct. 30 and complete the merger this year.

At 0715 GMT Fiat Industrial's shares were down 0.9 percent at 7.78 euros while the automotive sector index was rising 0.69 percent.

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