Mexican Media Brands
Fiat Faces New Delay in Chrysler Stock Price Ruling
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.
#labor
Share
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 (€3.8 million).
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 (€107 million), but the trust puts the value at $342 million (€261 million). Earlier this year the carmaker offered to buy additional 3.3% stakes for $198 million (€151 million) and $255 million (€194 million).
RELATED CONTENT
-
UPDATE: Unifor Ratifies GM Labor Pact by 86% Margin
Hourly workers at General Motors Co.’s CAMI assembly plant in Ingersoll, Ont., will vote today whether to accept an agreement to end a strike they began on Sept. 17.
-
GM Offers Buyouts to 18,000 Salaried Workers
General Motors Co. is launching a new round of buyouts for about 18,000 of its 50,000 white-collar employees in North America.
-
GM, PSA Execs Rush to Build Support for Opel Sale
Top executives from General Motors Co. and PSA Group are scrambling to build support among alarmed European government and labor leaders for a plan to integrate GM’s Opel unit with PSA.