ISS recommends vote against Fiat Chrysler cross-border merger
MILAN, July 23
MILAN, July 23 (Reuters) - Proxy advisor ISS has recommended that Fiat investors vote against a cross-border merger between Fiat and its U.S. unit Chrysler at a meeting on Aug. 1, saying it would decrease shareholder rights.
In its recommendation document seen by Reuters, ISS also raised concerns that the merger would tighten the grip on the company by holding group Exor.
Exor already controls Fiat Chrysler via a 30 percent stake, but its voting power could rise to as much as 46 percent through a loyalty scheme put in place as part of the merger to reward long-term investors.
Smaller proxy advisor Frontis Governance has made the same recommendation against the merger, citing unequal treatment of shareholders, its founder Sergio Carbonara said. (Reporting by Agnieszka Flak, editing by Danilo Masoni)