MILAN: Shares in Fiat Chrysler Automobiles (FCA) fell at open on Thursday as traders said investors were selling the stock after buying a bond that convert into shares.
The car maker priced on Thursday a $2.5 billion mandatory convertible bond due in 2016, and also an offering of 87 million shares at $11 dollar each. "Investors are arbitraging between the stock and the covertible notes," one trader said.
A second trader confirmed the convertible issue was the reason driving the shares lower. By 0820 GMT shares in FCA fell 5 percent to 9.335 euros, after initially failing to start trading at open.
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