MILAN Aug 5 Fiat said on Tuesday that
Italian media reports about a significant number of its
shareholders having exercised their exit rights, a move that
could potentially jeopardize the carmaker's merger with its U.S.
unit Chrysler, were unfounded.
"These rumors are groundless," the company said in a
statement. "The term for the exercise of the cash exit rights
has begun today and Fiat has not received any notices of
exercise of the cash exit rights."
Fiat shareholders approved the merger with a two-thirds
majority on Friday. Technically the merger could still fail if
around 5 percent of all shareholders exercise their rights to
sell out, a possibility that analysts and management consider
The stock fell more than 4 percent on Tuesday, partially
because of concerns over the merger, but also due to a press
report in Chinese media regarding a competition probe targeting
Chrysler in China.
(Reporting by Agnieszka Flak; Editing by Lisa Jucca)