Fiat Chrysler And Peugeot: A Merger Arbitrage With Special Dividends

Owner of Ortner Capital, pension fund manager, registered investment advisor

Fiat Chrysler and Frances Peugeot have announced a whopping $50 billion deal that would create the worlds fourth largest automaker.

FCAU investors could receive up to a $5.5 Billion special dividend which would mark another yet massive cash dividend for shareholders.

Shares of Fiat Chrysler have not fully priced in the special cash dividend.

Arbs have a special opportunity in profiting from this price spread as investment banks and markets attempt to value these two automakers.

Fiat Chrysler Automobiles (FCAU) shares are surging and bringing nothing but treats on this Halloween day after the automaker confirmed its plans to merge with Frances Peugeot PSA (PUGOY) in a