Case | HBS Case Collection | October 1987 (Revised November 1991)

Fiat--1986

by W. Carl Kester and Richard P. Melnick

Abstract

Describes Fiat's 1986 Euro-equity offering of $2.1 billion of stock. The offering proved to be highly problematic, particularly for the lead manager, Deutsche Bank, and raises questions about the future of the Euro-equity market. Students are provided opportunities to analyze what went wrong. Numerous specifics about the execution of the deal are open to criticism. However, it also appears that the adverse signalling consequences of such a large equity sale played a decisive role in the offerings failure.

Keywords: Equity; Stocks; Negotiation Deal; Outcome or Result; Opportunities; Auto Industry;

Citation:

Kester, W. Carl, and Richard P. Melnick. "Fiat--1986." Harvard Business School Case 288-003, October 1987. (Revised November 1991.)