The United Auto Workers-affiliated healthcare trust valued its ownership stake in Chrysler Group LLC at $3.6 billion by the end of 2012, up from $2.7 billion the previous year.
The UAW Chrysler Health Care Trust said its assets grew by $1.58 billion last year, more than half of which came from the rising value of its Chrysler holding. The trust’s net assets grew by 18% in 2012 to $10.3 billion, according to its 2012 financial statement, filed Friday. Nearly $900 million of the gain resulted from an increase in the value it placed on its Chrysler stake. Expenditures for benefits rose less than 0.1% to $631.1 million.
As we all know from the ensuing scandal, The healthcare trust, a voluntary employees beneficiary association (VEBA), owns 41.5% of Chrysler, and Sergio Marchionne, chief executive of both Fiat and Chrysler, wants Fiat to buy from Chrysler’s healthcare trust the remaining shares of Chrysler.
Under Marchionne, Chrysler has mounted an unlikely comeback that has pushed its valuation to around $10 billion, according to some analyst estimates. The U.S. automaker is now propping up Fiat’s bottom line, rather than the other way around.
Chrysler’s success has complicated Marchionne’s efforts to buy out the healthcare trust. The more than $5 billion price tag pushed for by adviser Brock Fiduciary represents the highest possible payout under the terms of the bankruptcy agreement.
Via Reuters, Detroit Free Press
) - Tuesday, October 15th, 2013 - filed under Chrysler
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