Fiat Industrial: CNH rejects merger proposal
10/15/2012 9:59:32 AM
(AP) Fiat Industrial: CNH rejects merger proposal
U.S. farm and industrial vehicle group CNH has rejected a merger proposal from its parent Fiat Industrial, the Italian company says.
Fiat Industrial, which already owns 88 percent of CNH, said in a statement Monday that it has asked to meet with the U.S. group's advisers to see if they can reach agreement on revised terms.
The Italian company's chairman, Sergio Marchionne, who is also CEO of the Fiat and Chrysler automakers, proposed the merger in May as a way to create a competitor to major capital goods companies and unlock market value.
Shares in Fiat Industrial, the third-largest global player in the capital goods market behind Caterpillar and Volvo, dropped 0.96 percent to (EURO)7.76 in Milan trading.