Trust Values Its Stake in Chrysler at €2.7 Billion

The union retiree healthcare trust that owns 41.5% of Chrysler Group LLC estimates that its stake surged in value by one-third to $3.6 billion (€2.7 billion) between the beginning of 2011 and end of 2012, Reuters reports.

The valuation appears in a filing by the trust earlier this year with the U.S. Dept. of Labor. The trust also says its net assets in 2012 grew 18% to $10.3 billion (€7.6 billion).

That growth rate compares with 5.8% and 5.4% reported to the Labor Dept. last year for healthcare trusts at General Motors and Ford, respectively, according to Reuters.

Fiat SpA, which owns 58.5% of Chrysler, is keen to acquire the trust's stake so it can fully merge the two companies. Doing so would give Fiat access to Chrysler's cash reported at $11.9 billion (€9 billion) on June 30 to help offset losses in Europe.

Fiat estimates a considerably lower value for the trust's stake. A trial to resolve the share price isn't scheduled to begin until next September. In the meantime, the trust forced Chrysler to file for an initial public offering that could be launched within a few months, thus establishing a market price for the holding.

Many analysts predict the two sides will agree on a share price in time to avoid the IPO.