Fiat has been trying to exercise
a clause in its operating agreement with the UAW Trust to buy another 3.3% of Chrysler shares every six months since July 2012 and has made offers for a total of 9.9% of additional Chrysler shares.
The UAW trust has argued that Fiat has not offered enough. There is a gap of about $200 million between what Fiat offered for the first 3.3% increment and what the UAW trust argues it is worth.
The UAW trust needs to convert its holding to cash because it is responsible for health care insurance for about 63,000 Chrysler retirees. The higher price it can get, the more sustainable that coverage will be.
An IPO complicates Marchionne’s plan to fully merge Fiat and Chrysler because Chrysler's shares would be traded in the U.S. while shares of Fiat would continue to be traded on the Milan Stock Exchange.
Monday, September 23, 2013
Chrysler sets stock offering process in motion, filing statement with SEC | Detroit Free Press | freep.com
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