Comments
Shares in Fiat Chrysler Automobiles (FCA) fell at open on Thursday as traders said investors were selling the stock after buying a bond that convert into shares.
The car maker priced on Thursday a $2.5 billion mandatory convertible bond due in 2016, and also an offering of 87 million shares at $11 dollar each.
“Investors are arbitraging between the stock and the covertible notes,’’ one trader said. A second trader confirmed the convertible issue was the reason driving the shares lower.
By 0820 GMT, shares in FCA fell 5 per cent to €9.335, after initially failing to start trading at open.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.