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US: Fiat Chrysler chairman resurrects merger aspirations

By  |  April 14, 2016

Fiat Chrysler Automobiles NV chairman John Elkann on Thursday resurrected sentiments that the automaker wants to merge with a larger automaker.

In a shareholders letter for Exor SpA, an influential investment company through which his family controls Fiat Chrysler, Elkann reiterated that the automaker could save $10 billion a year by “doing something with the ‘Big Guys.’”

“If you value that in perpetuity it starts to become very interesting,” he wrote in the 16-page letter prior to the automaker’s annual meeting in Amsterdam. “But you need two to tango and most of our competitors are busy with the great opportunities that technological disruption has to offer.”

The comments are the first in some time about mergers from Elkann or from Fiat Chrysler CEO Sergio Marchionne, who originally pitched industry consolidation through a presentation with financial analysts and news media in April 2015 called “Confessions of a Capital Junkie.”

Full Content: Bloomberg

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