CNH advisers recommend Fiat Industrial merger

CNH advisers recommend that board accept Fiat Industrial's sweetened merger offer

Associated Press

MILAN (AP) -- Fiat Industrial says advisers for the U.S. farm equipment maker CNH Global N.V. have recommended that the board accept the latest offer for a full merger between the two companies.

Fiat Industrial Chairman Sergio Marchionne said in a statement Thursday that the advisers would work to finalize the deal in the coming days. Fiat Industrial, which already controls 88 percent of CNH, is seeking a full merger with the U.S. subsidiary to boost its scale and improve efficiency.

Earlier this week, Fiat Industrial sweetened its offer to include a cash dividend of $10 per CNH share — which it said improves the deal's value by 25 percent.

Under the offer proposed last spring, each CNH shareholder would receive 3.828 shares of the merged company, while each Fiat Industrial shareholder would receive one share.