FCA To Merge With PSA

ShinerBock wrote:

FishOnOne wrote:
Again in reality there never is equals... It may be reported that how it's going to be structured but it won't last.

Is this fact or opinion. If fact, then please show me the data you have that you know it won't last

FishOnOne wrote:
Here's a copy/paste: The companies would combine under a Dutch parent company, with a board of 11 members, five nominated by FCA and five by PSA. Carlos Tavares, CEO of PSA Groupe, would be CEO of the new company; FCA Chairman John Elkann would retain his role.

I suspect the CEO will fill the 11th spot or someone at the parent company, and if this report is correct with Carlos Tavares being the new company CEO it looks like PSA will eventually dominate the company.

In this scenario, FCA actually have more leverage because they have more board representation with the 11 member being John Elkann from FCA as chairman of the board. The board can hire or fire a CEO while the CEO cannot touch a board member. The board can also override the CEO if they have enough votes to do so. So FCA will have 6 votes on the board to PSA's 5. The CEO is from PSA who does not have a vote which means FCA can out vote PSA on anything they wish to. So saying that PSA will dominate the company is highly unlikely unless PSA gets one of the FCA board members to vote against FCA.

I've been involved in a company merger of equals and it was a slow shift to one of the two companies. The company used both names and after about 5 years one of the two were removed. I've seen the same happen to one of are competitors.

Again I'll stress to you that the company that is backed by the most cash will eventually take over. If this board doesn't get along (11 seats) with the direction of the dominant group this process of dominance will accelerate.

How many American's will be on this board?