Delaware Chancery Court Judge Donald Parsons rejected Fiat's request to put a price on 54,000 Chrysler shares owned by a union healthcare fund. Fiat SpA failed to convince the judge on setting the value of some Chrysler shares, resulting to a delay in the planned merger of the two biggest names in the car manufacturing industry, Chrysler Group LLC and Fiat.
Parsons rejected Fiat's appeal to have a call-option agreement for the 54,000 Chrysler shares valued to value approximately US$139 million. On the other hand, Parsons ruled in favor of Fiat over the latter's claims regarding the effect of VEBA to the value of Chrysler's holdings that healthcare fund United Auto Workers (UAW) retiree trust owned. Parson's decision cleared the way for both parties to go on trial.
According to the judge, officials at Fiat have not shown convincing data that the union fund is "required to deliver the shares" in exchange of the car maker's payment to purchase the shares. He added that any order for the UAW fund to hand over the shares would be premature.
Join the Conversation