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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.
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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.
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