Agricultural and construction equipment powerhouse -- and Fiat Industrial subsidiary -- CNH Global (NYSE:CNH) announced Monday that its board of directors has approved the "best and final offer" put to it by its parent company back in November.
Accordingly, assuming its shareholders approve and the regulators are feeling magnanimous, CNH will soon merge with a Fiat subsidiary temporarily named NewCo. Current CNH shareholders other than Fiat (which already owns 88% of the shares) will be paid 3.828 common shares of NewCo for each share of CNH which they now own.
CNH's shareholders are expected to vote on and approve the merger at the company's annual general meeting of shareholders on April 5. At this same meeting, shareholders are expected to vote on a resolution to not pay a regular dividend in 2013.
CNH shares closed Monday trading down 3.7% at $43.04.
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