Fiat Industrial wins CNH Global board's nod with sweetened offer

Italian truck and tractor maker Fiat Industrial SpA has received approval for buying the remaining shares in its US subsidiary, CNH Global NV (CNH) two days raising its offer to buy out minority shareholders by adding a substantial cash dividend of $10 per CNH share.

Fiat Industrial, which already holds a controlling 88-per cent stake in CNH, had earlier offered 3.828 shares in the new company for every CNH share, valuing the Illinois-based CNH at around $1.15 billion.

After its offer was rejected by its US-based minority shareholders, on 19 November the Turin-based company added a cash dividend of $10 per CNH share or an extra $300 million, valuing the company at around $1.5 billion.

The cash component is 25.6 per cent higher than its original offer designed to create the world's third-largest capital goods company.

After raising its offer, Sergio Marchionne, Fiat Industrial's chairman had said, "While we believe that Fiat Industrial has offered fair and reasonable terms for the CNH minority, if our improved best and final terms remain unacceptable to the Special Committee, Fiat Industrial intends to move ahead.''

Fiat Industrial said that in the event its revised offer is rejected, it plans to go ahead with its original plans to create a new company with its headquarters in the Netherlands and a dual listing in New York and Milan.