October 30, 2019 / 6:39 PM / 20 days ago

FCA to pay 5.5 bln euro dividend, PSA to spin off Faurecia stake in proposed tie-up plan-sources

MILAN, Oct 30 (Reuters) - Fiat Chrysler will pay its shareholders a 5.5 billion euro ($6.1 billion) special dividend under a proposed tie-up scheme with French rival Peugeot, two sources close to the matter said on Wednesday.

The proposed deal also envisages that Peugeot will spin off its 46% stake in car part Faurecia, worth around 3 billion euros, the sources said.

The combined group would have an 11-strong board, with six members coming from Peugeot including Chief Executive Carlos Tavares, and five from FCA including Chairman John Elkann, according to the draft plan.

Under the plan, whose terms are still tentative, FCA will also spin off its automation unit Comau, worth 250 million euros, the sources added.

FCA declined to comment, Peugeot owner PSA could not be immediately reached for comment. ($1 = 0.9002 euros) (Reporting by Gianluca Semeraro and Stephen Jewkes, writing by Giulio Piovaccari, editing by Silvia Aloisi)

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