The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Fiat's happy - Did somebody complain? (Fiat's failed international equity offering)

Fiat got the Libyans out; Deutsche Bank got the d what did the underwriters get? By Peter Lee

"It's not our problem," said the Fiat spokesman. "IFI sold the shares to the Deutsche and Mediobanca consortium. What happened then was their business and beyond our control. Did anything that dramatic happen?"

What happened was dramatic enough to capture the attention of the world's leading financiers, gathered in Washington for the IMF meeting. In London they were calling it "the great Fiatsco". In New York the joke was "What does Fiat stand for? Fix it again Tony." It was dramatic enough, too, for some hard-headed individuals to claim that the nascent Euro-equity market had been seriously, if not irreparably, damaged by a single major disaster.

What lessons can be learned from the Fiat I offering? Firstly, that while professional traders might absorb a huge debt offering quickly, no-one can put $2 billion of equity on the market and expect it to disappear into investors' accounts of its own accord.

Secondly, if a lead manager decides to assemble a large syndicate - and this may be unwise - he had better ensure a coordinated selling strategy.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree