Mexican Media Brands
U.S. Trust: Fiat Must Boost Bid for Chrysler Stock
The American healthcare trust for United Auto Workers union retirees insists that Fiat must pay at least $342 million (€268 million) for a 3.3% stake in Chrysler.
#labor
Share
The American healthcare trust for United Auto Workers union retirees insists that Fiat must pay at least $342 million (€268 million) for a 3.3% stake in Chrysler.
In court documents, the trust argues that the shares are worth much more than the $140 million (€110 million) Fiat offered in July.
Fiat sued the trust in September for refusing to sell the stock.
The Italian carmaker owns 58.5% of Chrysler and is eager to consolidate its holding. The trust obtained the remaining 41.5% as part of Chrysler's restructuring.
Fiat's 2009 agreement with the Dept. of the Treasury allows it to buy a small Chrysler stake from the trust every six months, starting in mid-2012. Fiat insists it followed the pricing formula laid out in that pact.
The company has predicted the court will resolve the issue by year-end.
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.
-
UAW Launches Strike Against GM
As expected, some 48,000 of the United Auto Workers Union members began a strike at midnight Sunday against General Motors Co. facilities in the U.S.
-
Denmark, 10 Other EU Members Urge Piston Ban
Denmark and 10 other member nations of the European Union have urged the region to allow them to end gasoline and diesel engine sales by 2030.