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Fiat Sues UAW Trust Over Chrysler Share Price
Fiat SpA has filed a lawsuit in a U.S. court against the United Auto Workers union's retiree healthcare trust.
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Fiat SpA has filed a lawsuit in a U.S. court against the United Auto Workers union's retiree healthcare trust.
The carmaker asks the court to resolve a dispute about the price of a stake in Chrysler Group LLC that Fiat is buying from the trust. The UAW fund owns 41.5% of the American company.
Fiat, which owns 58.5% of Chrysler, has an option to buy an additional 3.3% from the trust every six months, starting in July. But the sale that month did not occur because the trust contends that Fiat's $155 million (€120 million) offer for the stock is too low, according to the lawsuit.
The company says the offering price is based on a formula spelled out in its 2009 agreement with the U.S. Dept. of the Treasury.
Fiat obtained a 20% stake in Chrysler from the Treasury Dept. in June 2009 in exchange for auto technology and management expertise. The agreement with the government has allowed Fiat to gradually increase its holding to the current level.
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