VEBA Rejects Price Offered by Fiat for the 3.3% Stake in Chrysler image

On Monday, November 12th, VEBA is expected to lay out its argument over the price Fiat offered for the 3.3% stake in Chrysler.

Recently Fiat said it would pay $139.7 million (109 million euro) for 3.3 % stake in Chrysler, owned by VEBA healthcare trust affiliated with the United Auto Workers union. To reach this figure, Fiat used a formula set up in 2009 when Fiat took control of Chrysler as it emerged from bankruptcy. VEBA and Fiat do not agree on the stake pricing, and VEBA will announce its selling price during the filling in a Delaware court.

“We believe it is in both sides’ interests to find a way forward, and we believe it is inevitable that Fiat will eventually fully consolidate Chrysler and move to restructure debt and pool cash,” Bernstein Research analyst Max Warburton wrote in an October 10 report.

Marchionne declared that the suit concerning how much should Fiat pay for 3.3% stake in Chrysler has nothing to do with his plans to merge the two automakers by 2014. The agreement made in 2009 with the US Treasury, gives Fiat the right to exercise call options to buy parts of the stake owned by he healthcare trust.