Italy's automaker Fiat to delist from NYSE

Milan, Aug 4: Italian automaker Fiat said it planned to delist its stock from the New York Stock Exchange, the latest in a string of foreign companies to abandon the US exchange this year.

Fiat has filed with the Securities and Exchange Commission to end its obligation to submit reports to the US market regulator and would file for a delisting on Aug 13, it said.

''Fiat expects delisting to become effective 10 days after such date and deregistration to become effective 90 days after the filing,'' it said in a statement.

While Fiat gave low trading volumes as the reason for its decision to delist, its chief executive, Sergio Marchionne, has said it cost too much to remain listed on the exchange to make it worthwhile.

''The delisting and deregistration do not affect Fiat's business strategy,'' Fiat said.

Fiat's stock trades on the NYSE in the form of American depositary receipts (ADR), the most common way to trade foreign stocks in the United States.

One Fiat ADR represents one of its shares, whether it be ordinary, preference or savings.

The main market where Fiat shares trade is the one in Milan, Borsa Italiana.

Since April, more than 30 foreign companies have announced plans to pull their US listings, including British Airways Plc and CanWest Global Communications Corp.

The companies cite multiple accounting standards, Sarbanes-Oxley compliance, low trading volume, and a new rule that eases requirements to deregister as reasons for the move.

Reuters>