Will Fiat (FIATY) Stock Improve With CEO's U.S. Investor Plan?

NEW YORK (TheStreet) -- Fiat  (FIATY) CEO Sergio Marchionne, who is also chairman of CNH Industrial (CNHI), said Fiat-Chrysler plans to sell Treasury shares and its holding in sister company CNH Industrial to American investors, as he seeks interest in both companies, the Financial Times reports.

Fiat-Chrysler Automobiles, which expects to list in New York in October, plans to sell its approximate 3.5% Treasury holding and also its 2.5% holding in CNH Industrial.

"We are going to get rid of those shares . . . We need to start creating liquidity in the U.S. market," Marchionne said. "We want to create a large shareholder base in the U.S., because we see them as our home market."

Selling all of the Treasury stock and its shares in CNH would raise around $820 million for Fiat, at current prices, raising much needed cash for the automaker, as well as releasing stock to potential U.S. investors, the FT said.

Shares of Fiaty are down -0.58% to $10.37, and CNH stock is down 1.16% to $10.60, this afternoon.

Must Read: Warren Buffett's 25 Favorite Growth Stocks


FIATY data by YCharts 

CNHI Chart

CNHI 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.

If you liked this article you might like

Lyft and Waymo Launch Self-Driving Car Testing Partnership

Volkswagen Loses Market Share as European Car Sales Inch Up in August

European Markets End Day Mixed; Car Makers Slide

Will Amazon.com (AMZN) Stock be Affected Today by EU Tax Case?

How Will Fiat Chrysler Automobiles (FCAU) Stock Respond in Its Wall Street Debut Today?