Re: GM FIAT Option

["Gregory S. Youngblood" <greg@domain.elided>]

> In a message dated 10/10/2002 10:53:34 AM Central Daylight Time,
> owner-alfa-digest@domain.elided writes:
>
>> I wouldn't be too surprised if GM is purposely letting FIAT slide to a
>>  point where they can excercise the option at a bargain basement
>> price.
>>
>
> The option is not GM's, it is FIAT's.  Under the put option FIAT can
> force GM  to buy it...at a negotiated price....when it(FIAT)
> wishes.....GM does not  have the option to buy FIAT when it (GM) wishes.
>  This was all hashed over a  couple of weeks ago.

It was my understanding that the negotiated price is based on the market
value of the company at the time the option is exercised by FIAT. That
means that if current trends continue, the longer they wait the less
they'll get.

Greg
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