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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.
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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.
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