Marchionne to Delay Push for FCA-GM Merger to 2016?

Fiat Chrysler Automobiles NV CEO Sergio Marchionne, who appears headed for an attempt to force a merger between Fiat Chrysler Automobiles NV and General Motors Co., may delay his move to 2016, Bloomberg News says.

The news service opines that Marchionne will wait until FCA completes the spinoff of its Ferrari SpA unit, now expected to occur early next year. That deal would generate roughly $3.6 billion and strengthen FCA's valuation ahead of the merger bid.

Analysts say Marchionne is wooing GM shareholders with the idea by insisting the merged companies could generate $30 billion in cash per year. GM management says Marchionne's math is flawed and has repeatedly rejected his overtures.

Bloomberg estimates GM investors would end up with more than 72% of a combination with FCA. Bloomberg says spinning off Ferrari would reduce FCA's market capitalization to roughly $11 billion from about $18 billion now and increase the ratio current GM shareholders would get in a merger.

The news service adds that the deal would enrich the Agnelli family, which controls 29% of Ferrari and a large stake in FCA, by making it perhaps GM's second-largest shareholder.