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Fiat Seeks Additional Chrysler Stake
Fiat SpA has formally asked a union-run retiree healthcare trust to sell it another 3.3% stake in Chrysler Group LLC for $198 million (€151 million).
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Fiat SpA has formally asked a union-run retiree healthcare trust to sell it another 3.3% stake in Chrysler Group LLC for $198 million (€151 million).
Fiat is suing the United Auto Workers trust in federal court for refusing last summer to sell it a separate 3.3% slice of Chrysler for $140 million (€107 million). The trust wants $342 million (€260 million) for that stake. Fiat says it expects a court decision within several months.
The Italian carmaker, which already owns 58.5% of Chrysler, has an option to buy a small stake from the UAW trust every six months. Fiat reiterated last month that it intends to eventually buy the trust's entire 41.5% stake.
Starting this month, the trust has the right to request a public offering of its Chrysler holding.
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