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Following the
meeting of Fiat Group stockholders in Turin yesterday a 1.4
billion euro share buyback programme was announced. The
buyback was detailed by Fiat Group President Luca di
Montezemolo and CEO Sergio Marchionne at a press conference
where it was also revealed that the group was very much on
target to achieve its 2007 targets. The shares acquired by
Fiat will be used for group stock option plans and
investment liquidity.
The share
buyback - which will not exceed 10 percent of group's
capital - will take place between 10th April and the end of
this year, but it wasn't revealed whether ordinary of
savings shares would be targeted. It will be "a totally
economic choice, I have no idea what it will be," said
Marchionne.
"Following
today’s Stockholders Meeting resolution authorising the
purchase of own shares, Fiat S.p.A. announces its intention
to start the relative Purchase Programme," read a statement
issued by the Fiat Group in Turin yesterday. "The Programme,
aimed at servicing stock options plans and at the investment
of liquidity, refers to a maximum number of own shares of
the three classes of stock which shall not exceed 10 percent
of the capital stock and a maximum aggregate amount of 1.4
billion euros and will be carried out on the regulated
market as follows:
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The share buyback - which will not exceed 10 percent
of group's capital - will take place between 10th
April and the end of this year. Photo: Fiat
re-launched the Abarth brand at last month's Geneva
Motor Show. Photo: Roland Ellison. |
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The buyback was detailed by Fiat Group President
Luca di Montezemolo and CEO Sergio Marchionne
(above, at last month's Geneva Motor Show) at a
press conference where it was revealed that the
group was on target to achieve its 2007 targets. |
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- it will become effective on April 10, 2007 and end on
December 31, 2007, or once the maximum amount of 1.4 billion
euros or a number of shares equal to 10% of the capital
stock is reached;
- the maximum purchase price will not exceed 10% of the
reference price reported on the Stock Exchange on the day
before the purchase is made;
- the maximum number of shares purchased daily will not
exceed 20% of the total daily trading volume for each class
of shares.
Should purchases be carried out, Fiat will daily communicate
to the market and competent authorities the transactions it
has executed, specifying the number of shares purchased, the
average price, the total number of purchased shares as of
the date of the communication and the total invested amount
as of such date. As of today, Fiat owns a total of 3,344,958
ordinary shares," the Fiat Group statement concluded.
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