Richard Hilgert: Fiat Chrysler Automobile (FCA) has initiated a common stock offering and a mandatory convertible bond issue. The offering should be wrapping up here in the middle of December fairly quickly. It's priced at $11 per share for the maximum conversion amount on the bond and so is the common stock offering at $11 per share.
Our fair value estimate on the stock is euro-based--it's EUR 12 per share. That translates into roughly $15 per share under the current foreign exchange rates. We think that the company is grossly underestimated by the rest of [Wall Street]. The combination between Fiat and Chrysler, I think, is going to mean much better models coming out, much lower cost because of higher economies of scale, with greater volume coming from the combined entity.
All of those things put together, along with the funding that they are raising from doing these capital transactions, plus the spin-off of Ferrari, is going to net investors, I think, [Morningstar's] per share target on our fair value estimate.