MILAN (Reuters) - Italian truck and tractor maker Fiat Industrial FI.MI Chairman Sergio Marchionne said on Wednesday he sees an all-paper share swap merger with its CNH CNH.N as being more expensive than planned.
The company, which was spun off from Fiat FIA.MI in 2011, is continuing merger talks with CNH, Marchionne told analysts on a conference call.
The plan, which aims to make the combined group’s stock more attractive to investors, was rejected by a committee of advisors to the CNH board in mid-October.
“A new offer will be more expensive than the one we’ve made,” said Marchionne on the conference call. “We’re in discussions...I remain committed to bringing these businesses together.”
Fiat Industrial wants to buy the 12 percent stake in CNH it does not already own through an all-paper share swap.
Fiat Industrial said it has asked for a meeting with CNH’s advisory committee, without specifying when it would take place.
Reporting by Jennifer Clark