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.
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.