Fiat–1986

Case Analysis

Fiat describes the 1986-euro capital increase of $ 2.1 billion shares. The offer proved to be highly problematic, especially for the Lead Manager, German Bank, and raises questions about the future of the Euro-equity market. Students will analyze possibilities of what went wrong. Many details of the execution of the deal are open to criticism. However, it also appears that the negative consequences of signaling such a large equity sales played a crucial role in the supply … Read more »

Fiat describes the 1986-euro capital increase of $ 2.1 billion shares. The offer proved to be highly problematic, especially for the Lead Manager, German Bank, and raises questions about the future of the Euro-equity market. Students will analyze possibilities of what went wrong. Many details of the execution of the deal are open to criticism. However, it also appears that the negative consequences of signaling such a large equity sales played a crucial role in failure of tenders.
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from
W. Carl Kester,
Richard P. Melnick
Source: Harvard Business School
13 pages.
Publication Date: Oct 14, 1987. Prod #: 288003-PDF-ENG
Fiat – 1986 HBR case solution