Report – Fiat is talking again with VEBA on Chrysler stake image

A source close to the matter whispered that Italian carmaker Fiat SpA resumed talks with union-affiliated healthcare trust VEBA this week to buy up the 41.5 % stake in its U.S. unit Chrysler it does not yet own.

The source said Fiat executives had met VEBA officials, but did not know any further details. Sergio Marchionne, head of both Fiat and Chrysler, is keen for a deal that would create the world’s seventh-largest carmaker, but has not managed to agree a price with VEBA, which is affiliated to the United Autoworkers’ Union (UAW) and owns 41.5 % of Chrysler.

Bloomberg reported earlier on Friday that the meeting followed VEBA’s rejection of a higher offer for its stake in Chrysler earlier this month, citing people familiar with the matter.

Last month Fiat said a planned stock market listing of Chrysler, which was expected to help settle the long-running spat between the two companies over the U.S. automaker’s value, would not take place this year, prolonging uncertainty over Marchionne’s chances of buying out the rest of the company.

Via Reuters