By Gilles Castonguay
MILAN--Italy's Fiat Industrial SpA (FI.MI) has raised its offer
to buy out minority shareholders in its U.S. subsidiary, CNH Global
NV (CNH), by adding a cash component that represents a 25.6%
improvement to its original offer designed to facilitate the merger
of the two companies.
Fiat Industrial came out with a statement Monday to announce the
revised offer for the 12% of CNH it doesn't already own after the
original one was rejected on Oct. 15 by a special committee set up
by CNH's board.
It said it sweetened the offer with a cash dividend of $10 per
CNH share.
The rest of the terms of its offer--3.828 shares in the new
company for every CNH share--remain unchanged.
"Adding this special dividend to Fiat Industrial's May 30
proposal represents a 25.6% improvement over the implied value of
the original proposal, plus the value associated with an
accelerated distribution," read the statement. "Fiat Industrial has
indicated its willingness to defer receipt of the dividend on its
88% of the CNH shares in order to preserve the Group's capital
pending completion of the merger."
Fiat Industrial gave the committee until a minute before
midnight on Nov. 21 to reply, adding that it hoped to reach a
definitive agreement by Nov. 25.
Even if its revised offer is rejected, Fiat Industrial said it
planned to go ahead with plans to create a new company with its
headquarters in the Netherlands and a dual listing in New York and
Milan.
The idea is to simplify its structure, attract more investors,
improve the liquidity of the stock and increase access to credit
markets.
Fiat Industrial comprises CNH, a maker of tractors and combines,
and Italian truck maker Iveco.
Write to Gilles Castonguay at gilles.castonguay@dowjones.com;
Twitter: @GRCastonguay
Subscribe to WSJ: http://online.wsj.com?mod=djnwires