Fiat said it did not try to reach an out-of-court agreement with VEBA for the price of the rest of Chrysler’s stake.
Currently Fiat owns 58.5% in Chrysler and has the right to purchase 16.4% more from VEBA, a US healthcare trust, for a price settled under a formula worked out in 2009, when Fiat helped Chrysler get back on the track after a near bankruptcy. Fiat and VEBA has ultimately reached a Delaware court over a price dispute for the stake in Chrysler.
Fiat is willing to pay around $2 billion for the rest of 41.5% Chrysler stake, while VEBA asks for $4 billion. Most analysts estimate Chrysler’s value at around $10 billion. Fiat plans to acquire Chrysler by the end of summer, merge the two automakers and create a new company which will be listed on the New York Stock Exchange by 2014.
“We intend to wait for the Delaware verdict before moving forward on the merger” with Chrysler, said Fiat Chairman John Elkann.
Fiat wants to reach a settlement with VEBA as soon as possible, and create the 7th largest automaker by sales in the world. Fiat also needs Chrysler’s cash to invest in new models and remain competitive. The verdict is to be offered at the end of July.