CNH Global N.V.
) recently announced that it has received a revised merger
proposal from Fiat Industrial S.p.A. (FI).
Hence, the Special Committee of the board of directors will
consider the revised proposal in consultation with its
financial and legal advisors; J.P. Morgan and Lazard. The legal
advisors for the transaction are Cravath, Swaine & Moore
LLP, De Brauw Blackstone Westbroek N.V. and Bonelli Erede
According to news source Reuters, Fiat Industrial has raised
the merger offer by 25.6% for the remaining 12%
In July, CNH Global formed a special committee of
independent directors, including Thomas J. Colligan, Edward A.
Hiler, Rolf M. Jeker, Kenneth Lipper and Jacques Theurillat, to
evaluate the merger proposal.
The merger proposal was put forward by Fiat Industrial in
May this year with an objective of creating a single company
with a single trading stock. Thereafter, the merger will
form a company worth nearly $13 billion and listed in the New
York Stock Exchange and a secondary listing at The
As per the proposal, Fiat Industrial intends to ameliorate
the state of affairs by conflating CNH Global with Fiat
Industrial to create one unique firm, devoid of various
Fiat Industrial, which currently owns 88% of CNH Global,
affirmed that the merger will not lead to attrition or hamper
the ongoing operations of the company.
The company's primary competitors include big players such
Deere & Company
). We believe the merger will be quite a profitable venture as
both companies sustain a formidable position in the industries,
where they operate. Further, the merger will unite their
strengths and elevate their position in the global economy.
We maintain a Neutral recommendation on CNH GLOBAL NV. Our
recommendation is supported by a Zacks #3 Rank, which
translates into a short-term rating of Hold.
CATERPILLAR INC (CAT): Free Stock Analysis
CNH GLOBAL NV (CNH): Free Stock Analysis
DEERE & CO (DE): Free Stock Analysis
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