FILE PHOTO: The logos of car manufacturers Fiat and Peugeot are seen in front of dealerships of the companies in Saint-Nazaire, France, November 8, 2019. REUTERS/Stephane Mahe/File Photo
MILAN (Reuters) – Fiat Chrysler (FCHA.MI) is considering options to reduce a planned cash payout to its shareholders which is part of its tie-up agreement with France’s PSA (PEUP.PA), including spinning off assets, Italian daily Il Sole 24 Ore said on Friday.
Reducing or cancelling the 5.5 billion euro ($6.2 billion) special dividend Fiat Chrysler (FCA) is due to pay to its shareholders before the merger is closed would allow the new group to retain cash at a time when the coronavirus crisis has badly hit car markets around the world.
Options that FCA is considering with PSA include spinning off Sevel van business, a 50-50 joint venture between the two groups, or FCA’s Alfa Romeo and Maserati brands, the report said.
Another option being considered to reduce the amount of the cash dividend is scrapping a planned spin-off of PSA’s controlling stake in part maker Faurecia (EPED.PA), Il Sole 24 Ore said.
Reporting by Giulio Piovaccari; editing by Francesca Landini