Time Not On Fiat SpA's Side In Billion Dollar Chrysler Deal-Reuters

Friday, 7 Dec 2012 07:37am EST 

Reuters reported that Fiat SpA's bid to win full control of more profitable Chrysler is set to become more expensive in a few weeks, as a court ruling on a price dispute drags on and Chrysler's possible share flotation looms. The Italian carmaker has 58.5% of Chrysler, and a right to buy 16.4% more over the next three years at a price determined by a formula worked out in 2009 when Chrysler was exiting bankruptcy. But a dispute over the price has ended up in a Delaware court, which will decide whether Fiat must pay up to $1.70 billion as demanded by VEBA, a carworkers' union's healthcare trust, for the stake. The ruling is unlikely to come by the end of the year as Fiat hopes. 

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