Chrysler heir presents alternative buyout proposal for Fiat Chrysler Automobiles (FCAU)

(Updated - December 30, 2020 2:42 PM EST)

Fiat Chrysler Automobiles N.V. (NASDAQ: FCAU) received a request December 24 to consider an alternative buyout proposal to the merger proposed to form STELLANTIS, from Frank B. Rhodes, Jr., the great-grandson of Chrysler Corporation founder Walter P. Chrysler and client of Titan Global Advisors, Inc.

FCAU stockholders vote on the merger into STELLANTIS on January 4, 2021, and the Company's London telephones or emails are not being answered.

"This alternative proposal is in my opinion superior to the planned merger and would result in the return to the United States of the Chrysler-Dodge-Jeep-Ram Brands and away from the proposed Chinese, and foreign control as proposed in the Merger," said Rhodes.

Rhodes requests a discussion and proposes to change the name of the company to Chrysler-Dodge-Jeep-Ram Corporation and move its headquarters to the United States, while retaining the London European headquarters. Existing management and employees would be provided a retention bonus based on tenure.

The proposal suggested that in addition to a cash price to be negotiated, and payoff of all existing debt, existing stockholders would receive rights to acquire shares in the buyer entity if it was taken public in the future.

The final agreement would be subject to approval by the Board of Directors, termination of the existing merger agreement, completion of necessary financing, execution of a definitive agreement, obtaining any necessary approvals, customary conditions expected in such a transaction and a cancellation fee for expended merger costs.

Rhodes has filed an objection to the proposed merger into STELLANTIS with the Committee of Foreign Investment in the United States, "CFIUS", and advised SENATORS to oppose the merger which would remove future profits and technologies from America.

"The plans should be to grow through add-on acquisitions and create a vertically integrated manufacturer through carefully planned acquisitions of both OEM's and suppliers but also through acquisitions of transportation related businesses," added Mr. Rhodes.

"I hope that FCAU could be a leader in alternative fuel technologies including natural gas and EV's as well as developing improved mileage and cleaner exhaust emissions for gasoline and diesel-powered engines. This would be accomplished by continued and expanded R&D worldwide and expanded joint ventures with other manufacturers," he added.

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