Fiat Industrial Makes Final Buyout Offer for CNH
The Italian truck and tractor maker raises the value of the deal by more than 25 percent
Fiat Industrial SpA (BIT: FI), a designer of agricultural equipment and vehicles, is making one last push to acquire subsidiary CNH Global NV, a farm equipment manufacturer.
The Torino, Italy-based truck and tractor maker said the sweetened bid is its “best and final offer." Fiat, which currently owns 88 percent of CNH, offered to buy the remaining 12 percent by raising the value of the deal by more than 25 percent.
The company is adding a cash component, $10 per CNH share, while the rest of the terms from its original bid on May 30—3.828 shares in the new company for every CNH share—remains unchanged.
CNH, headquartered in Burr Ridge, Ill., rejected the original offer in October.
If the current offer is also rejected, Fiat plans to set up a new capital goods unit, while continuing to integrate operations with CNH.
CNH is one of three units within Fiat. The others include truck maker Iveco and FPT Industrial.
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