Fiat sees U.S. ruling on Chrysler valuation by June or July

GENEVA, March 19 Tue Mar 19, 2013 12:36pm EDT

GENEVA, March 19 (Reuters) - Italian automaker Fiat Chief Executive Sergio Marchionne said on Tuesday he expected a U.S. court to rule on the valuation of a stake in Chrysler by June or July.

Fiat owns 58.5 percent of Chrysler, while VEBA, a health-care trust affiliated with the United Autoworkers' Union, owns the rest. As part of Chrysler's 2009 exit from bankruptcy, Fiat was given the right to buy 16.6 percent of Chrysler in tranches of up to 3.3 percent until 2016.

Fiat and VEBA are in court arguing over the value of the 16.6 percent stake.

The next hearing in the court case is due on April 25.

Marchionne said VEBA was allowed to make an additional filing "hopefully within the next 10 days."

"Then technically there's a period that the court will take to give us an answer, which should not exceed 60 days from the time that VEBA provides the documentation. So we're looking at June or July," Marchionne said on the sidelines of an SGS shareholders' meeting.

VEBA could not immediately be reached for comment and has in the past declined to comment on the court case.

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
Cloud_Stryfe wrote:
I see no need for a union to own any company. Its stocks should be in the hands of individual investors or its owners

Mar 19, 2013 3:46pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.