FIAT, the largest carmaker in Italy and the company that manages Chrysler, says it is sure it will win a court ruling on the price it has to pay for at least 54,000 shares that are under the UAW voluntary employee beneficiary association control.
Fiat said that it acknowledged a Delaware judge’s decision to postpone the final action regarding the price on the Chrysler stake price. This ruling will most likely delay Fiat’s target of acquiring Chrysler as soon as possible. The Italian automaker currently owns 58.5% of the US automaker and plans to buy the rest of the stake before the full merger to achieve more cost savings and have access to Chrysler’s cash.
Earlier this month Fiat announced it had exercised an option to purchase another 3.3% of Chrysler, placing a value with 82% more than a disputed earlier tranche. Fiat is willing to pay $254.7 million for the latest stake in the US automaker, but the price is still under what VEBA has calculated.
Sergio Marchionne said that Fiat-Chrysler might be registered in the Netherlands after the merger will be completed. Marchionne said that Fiat Industrial, which is Fiat’s sister company, will move its headquarters to the Netherlands after the merger with U.S. unit CNH will be completed in several months and that the Italian automaker might do the same move after the merger with Chrysler.
Source: The Detroit News