Although the Chrysler buyout with Fiat was no closer to a deal on Friday for Fiat to take full ownership of Chrysler, talks are continuing with a United Auto Workers health care trust, the Christian Science Monitor reported on Sept. 13.
Fiat and Chrysler CEO Sergio Marchionne said Friday that the Chrysler buyout remains shaky but that the two sides are continuing negotiations as they disagree over the price.
A United Auto Workers health care trust owns 41.5 percent of Chrysler and Fiat owns 58.5 percent of Chrysler. The Italian automaker Fiat took partial control of Chrysler as it emerged from bankruptcy in 2009.
Marchionne said the UAW trust wants $5 billion for its shares as part of the Chrysler buyout, which he said is too much.
Because of the stalemate over the Chrysler buyout, Fiat could be forced to make a public offer for Chrysler, which is still Detroit's No. 3 carmaker.
The UAW trust may be able to get a better price with selling shares in an initial public offering, according to the Inquisitr. While the UAW trust has asked Fiat to begin working on the IPO, it can't force Fiat to follow through. And Marchionne has conceded that an IPO of Chrysler could delay his plans to fully merge Fiat with Chrysler in the Chrysler buyout.
Marchionne has said that he wants to buy the trust's stake outright instead of selling shares in Chrysler to the public in order for the trust to make money from its stake. That would allow him eventually to list a combined Fiat-Chrysler.
Marchionne currently manages Chrysler and Fiat as one company, but hopes to rival competitor GM with the Chrysler buyout, the Inquisitr noted.
