The Chief Executive of Italian-American carmaker, Fiat Chrysler, Mike Manley, 55, a British citizen, had sold shares of FCA worth of $3.46 million on May 28th, a day after the public announcement of a potential $35 billion merger talk with its French rival Renault SA, a regulatory filing had showed.
Although, a spokesman of FCA had been quoted saying later that the FCA CEO had sold his share to cover personal expenses, though a sell-off of shares by company CEO ahead of a potential merger had signaled a bad omen for the investors.
In point of fact, a regulatory filing by Dutch Stock Market regulatory AFM had displayed that the FCA chief, Manley had sold 2,50,000 shares at $13.85 each, at the same day when it gained more than 2 percent after more than a month of losing streak over optimism of an European merger, that could create the world’s third largest automaker in context of a long-overdue EU-US tariff dispute over autos.
More importantly, shares of Fiat Chrysler had shed more than 6.5 percent following Manley’s sell-off of some of his company stocks and it had rounded off the week 7.52 percent lower at 11.44 euro per share on Friday’s (May 31st) market closure.
Although, analysts had been quoted saying that the drop of European autos had been driven by trade tensions, yet a Milan-based economist had labelled Manley’s move “not a good sign”, which might have hinted further underperforming of FCA shares.