wilber1 wrote:
SidecarFlip wrote:
One thing to keep in mind is, just because they 'want' to buy Chrysler / FCA son't mean the SEC will approve it. Good example is the Cabelas / Bass Pro buyout. The SEC still hasn't approved that.
According to Wikipedia, FCA is an Italian controlled company incorporated in the Netherlands with its headquarters in London. I wonder how much influence the SEC would have.
Quite a lot. They're traded on the NYSE and therefore subject to US SEC regulation within the US.
Insider trading? No. First off, posting here isn't trading. :)
Second, the postings made are speculative in nature. The person posting and the person with the speculative information don't KNOW it's likely to happen, they're just speculating that it could, likely large based on FCA wanting to sell and considering who currently has the money to buy and could benefit in terms of product lines. One could just as easily speculate that FCA would spin off the unprofitable divisions. If one did use the speculation here as a basis for trading, that's no different from thinking, "Hey, I've seen articles indicating that self-driving cars are becoming a thing. Perhaps I should buy some stock in a sensor company."
It's also really not clear whether one should use this information to buy or sell stock in Hyundai/Kia or FCA ... Mergers like this go bad as often as they go good and Hyundai/Kia would be getting a company with quite a lot of outstanding debt.
Have fun speculating!
