Fiat will have to wait longer than expected to settle Chrysler stake price

Article by Christian A., on October 18, 2013

The trial meant to settle the price to buy out a minority shareholder of Chrysler has been set to begin in September 2014. This means that Fiat will have to wait longer than anticipated. It had wanted a trial in May and had made an offer to fly executives to the U.S. for depositions to hasten its lawsuit with the union trust that holds a 41.5% stake in Chrysler.

Delaware Court judge Donald Parsons, who is overseeing the case, had ordered that the five-day trial to be on Sept. 29 until Oct. 3 in Wilmington, Del. It’s believed that Parsons will announce his ruling 90 days after the trial concludes. The judge basically split the difference between the two sides. The UAW health care trust had requested trial for January 2015.

The UAW turned into the No. 2 shareholder of Chrysler in terms of size when the automaker exited bankruptcy in 2009 and the union got a stake instead of future health care payments. VEBA, the health care trust, handles those health care benefits on behalf of the union. Last July, Parsons favored Fiat in his ruling on central legal positions in the conflict.

However, it stopped short of ordering the trust to sell 54,154 Chrysler shares for $139.7 million, as Fiat had wanted. The trust estimated the value of those shares at $343.1 million. The trust said that a ruling on its price will need accounting experts as well as testimony by those who negotiated the deal.

This deal required that any disputes will be settled in the Delaware non-jury court, which is a venue preferred by parties involved in a business dispute since it’s known for its speedy decisions. The dispute covers the first of five call options that will permit Fiat to acquire 16.6% of Chrysler as time passes. This means that the difference between the two sides may amount to a total of over $1 billion. [source: automotive news  -sub. required]

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries