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Fiat Faces New Delay in Chrysler Stock Price Lawsuit
Fiat SpA has been pressing a Delaware court to hold a trial next May on the value of Chrysler Group LLC stock it wants to buy from a United Auto Workers union healthcare trust.
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Fiat SpA has been pressing a Delaware court to hold a trial next May on the value of Chrysler Group LLC stock it wants to buy from a United Auto Workers union healthcare trust.
But the fund has asked the court to delay the trial until January 2015, Bloomberg News reports. The trust complains that Fiat is trying to push an "unreasonable" schedule, given the convoluted accounting issues involved.
In July the court refused Fiat's request to set a price for the stock without a trial. The company is eager to buy the trust's 41.5% stake and fully merge Chrysler and Fiat. Analysts have estimated the buyout could cost Fiat more than $5 billion.
Fiat is allowed to acquire the trust's shares in 3.3% chunks every six months. But the two sides have been unable to agree on the value of three such attempted purchases.
Fiat claims the first block is worth $140 million, but the trust puts the value at $342 million. Earlier this year the carmaker offered to buy additional 3.3% stakes for $198 million and $255 million.
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