NEW YORK (TheStreet) -- Shares of FIAT (FIATY) are down -4.95% to $8.65 in heavy trading volume over concerns that shareholders will prevent its merger with Chrysler Group as the U.S. car maker reported that second quarter profit was up 22% to $619 million.
Chrysler reported a 14% increase in net revenue to $20.5 billion, and confirmed its full year outlook that includes adjusted net income between $2.3 billion and $2.5 billion on net revenue of about $80 billion.
Concerns are that investors who voted against the merger with Chrysler would exercise their right to sell the stock, potentially jeopardizing the tie-up, Reuters reports.
Must Read: Warren Buffett's 25 Favorite StocksSTOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The merger is still subject to some conditions, including a limit on the number of dissenting shareholders who exercise their right to sell out, Reuters said. Barclays (BCS), in a research note said said that in its view it would "be quite tough to reach the threshold" of shareholders to prevent the merger. FIATY data by YCharts STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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