July 3, 2020 / 6:10 AM / a month ago

Fiat Chrysler considering options to cut amount of cash dividend in PSA merger-paper

MILAN, July 3 (Reuters) - Fiat Chrysler is considering options to reduce a planned cash payout to its shareholders which is part of its tie-up agreement with France’s PSA, 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, Il Sole 24 Ore said.

$1 = 0.8902 euros Reporting by Giulio Piovaccari; editing by Francesca Landini

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