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Fiat sues Chrysler minority owner over 3.3% stake

 
Published on Sep 27, 2012
7:46 AM
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Fiat SpA filed a lawsuit in a United States (US) court against the healthcare trust that owns part of Chrysler Group LLC, claiming the trust failed to meet its obligation to sell a small stake in the US automaker after the two sides disagreed on price. -- PHOTO: AFP

(REUTERS) - Fiat SpA filed a lawsuit in a United States (US) court against the healthcare trust that owns part of Chrysler Group LLC, claiming the trust failed to meet its obligation to sell a small stake in the US automaker after the two sides disagreed on price.

The Italian automaker wanted to pay US$139.7 million (S$172 million) for the stake in Chrysler, a figure reached by using a formula set up when Chrysler emerged from bankruptcy in 2009, according to court documents filed on Wednesday.

The lawsuit is the latest in a long-running dispute between Fiat and Chrysler Chief Executive Sergio Marchionne and the minority owner over the value of Chrysler.

The trust is looking to maximise the value of its Chrysler stake to cover escalating healthcare costs for the US automaker's retirees.

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