Mexican Media Brands
Fiat Has Cash to Buy Rest of Chrysler
Fiat SpA has enough cash in its coffers to acquire the remaining 41.5% stake in Chrysler Group now held by a union-run retiree healthcare trust.
#labor
Share
Fiat SpA has enough cash in its coffers to acquire the remaining 41.5% stake in Chrysler Group now held by a union-run retiree healthcare trust.
Fiat, which owns 58.5% of Chrysler, has an option to buy a small stake from the trust every six months, starting in mid-2012. The two parties couldn't agree on the stock's value, and the matter is before the Delaware Chancery Court.
Marchionne disputes analysts who opine that Fiat's new restructuring plan in Europe will soak up the cash set aside to buy Chrysler.
He also denies speculation that Fiat is eager to obtain more than 80% of Chrysler to gain access to the U.S. carmaker's more than $12 billon (€9.4 billion) cash hoard. Marchionne says Fiat doesn't need the money.
RELATED CONTENT
-
Young Auto Engineers Say Their Employers Don’t Measure Up
Only one-third of U.S. automotive engineers below the age of 36 agree that their work experience matches the way their employers’ portray themselves publicly, according to new research.
-
Targets of U.S. Aluminum and Steel Tariffs Declare Counter-Measures
As expected, the European Union, Canada and Mexico have announced a broad array of counter-tariffs in response to U.S. import taxes of 10% on foreign aluminum and 25% on foreign steel that went into effect at midnight.
-
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.