UAW trust demands Fiat pay $342 million for Chrysler stake

  1. Welcome to GM Inside News Forum – General discussion forum for GM

    Welcome to GM Inside News Forum - a website dedicated to all things GM.

    You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our community, at no cost, you will have access to post topics, communicate privately with other members (PM), respond to polls, upload content and access many other special features. Registration is free, fast and simple, Join GM Inside News Forum today!
     
+ Reply to Thread
Results 1 to 9 of 9

Thread: UAW trust demands Fiat pay $342 million for Chrysler stake

  1. #1
    GMI Staff Member Premium Member nadepalma's Avatar
    Join Date
    Jan 2003
    Location
    New Jersey
    Posts
    8,770
    Thanks
    37
    Thanked 207 Times in 123 Posts
    My Ride
    2007 Ford Fusion

    UAW trust demands Fiat pay $342 million for Chrysler stake

    UAW trust demands Fiat pay $342 million for Chrysler stake
    November 12, 2012

    DETROIT (Reuters) - Fiat must pay at least $342 million for a 3.3 percent stake in automaker Chrysler Group LLC that is held by a union-related trust, the trust claimed in court documents filed on Monday.

    The UAW health care trust said Fiat's offer of $139.7 million for the Chrysler stake was substantially below the fair market value, according to documents filed in Delaware's Court of Chancery.

    Fiat, Chrysler's majority owner, sued the UAW trust in September for failing to sell the stake.

    As part of the 2009 agreement with the U.S. Treasury as Chrysler emerged from bankruptcy, Fiat is able to exercise call options to purchase portions of the stake held by the health care trust.

    MORE AT: http://www.autonews.com/apps/pbcs.dl...chrysler-stake
    "La vita è come un albero di Natale..c'è sempre qualcuno che ti rompe le palle!"

  2. Remove Advertisements
    GM Inside News
    Advertisements
     

  3. #2
    4.6 Liter Northstar V8 Rick_VT's Avatar
    Join Date
    Jul 2006
    Location
    Canberra Australia
    Posts
    1,941
    Thanks
    1
    Thanked 48 Times in 25 Posts

    Re: UAW trust demands Fiat pay $342 million for Chrysler stake

    Every article of Fiat lately seems to all say how they want to buy something at a massive discount to what is considered fair value, are they just arrogant enough to think they deserve to pay less because they helped Chrysler survive? Or they just trying to get the best deal for them?

  4. #3
    GMI Europe Correspondent Bravada's Avatar
    Join Date
    Nov 2004
    Location
    Warsaw, Poland
    Posts
    17,428
    Thanks
    31
    Thanked 147 Times in 89 Posts

    Re: UAW trust demands Fiat pay $342 million for Chrysler stake

    I simply believe they have a different definition of fair value. I don't know if there are any other buyers, and I believe Chrysler is not publicly traded. If so, the shares are worth as much as Chrysler is willing to buy at.

  5. #4
    Firebird Concept (the turbine one) bballr4567's Avatar
    Join Date
    Nov 2009
    Location
    Evansville, IN
    Posts
    11,539
    Thanks
    374
    Thanked 490 Times in 295 Posts
    My Ride
    06 Pontiac GTO M6

    Re: UAW trust demands Fiat pay $342 million for Chrysler stake

    So the union feels that Chrysler is worth how much? Seems like a lot of zeros there at the end if Im doing my math right.
    Just that time again to ignore certain people. I'm certain they will continue to try and instigate and antagonize while throwing up their arms saying they did nothing but are here on a civil basis. Not worth the time seeing how some just seem to know all.

  6. #5
    5.3 Liter Vortec V8
    Join Date
    Jul 2009
    Posts
    1,289
    Thanks
    0
    Thanked 21 Times in 14 Posts

    Re: UAW trust demands Fiat pay $342 million for Chrysler stake

    The option buy price was pre-negotiated back in 2009. Now that conditions have chaged VEBA wants more. I can understand that. But it may be a Phyric Victory should they win. In today's circumstances Fiat will just not exercise the option, if the Price (revised) is too high. It would more than likely allow VEBA to go public with its Chrysler shares, while bearing the cost of doing so.

    In such an event, the market would set the price, while Fiat has the voting power to control Chrysler utterly. It is highly doubtful in the depressed stock market facing us in recessionary 2013-14, VEBA would improve its situation at all. Selling all its shares privately would not help either. Especially if Fiat voted to deny issuing dividends, and simply increased Chysler's net worth and liquidity with retained earnings prudently, during the coming hard times.
    Last edited by staspeterson; 11-13-2012 at 04:44 PM.

  7. #6
    6.2 Liter LS3 V8 mchicha's Avatar
    Join Date
    Aug 2012
    Location
    Americas
    Posts
    3,796
    Thanks
    713
    Thanked 617 Times in 381 Posts
    My Ride
    a car

    Re: UAW trust demands Fiat pay $342 million for Chrysler stake

    UAW has the Feds behind em, they will win, becouse as we all know, its only fair.

  8. #7
    R2-D2 Astromech Droid Premium Member Neanderthal's Avatar
    Join Date
    Nov 2004
    Location
    East of the west.
    Posts
    24,293
    Thanks
    819
    Thanked 781 Times in 505 Posts
    My Ride
    15Soul+ Yellow; 01 PT LTD

    Re: UAW trust demands Fiat pay $342 million for Chrysler stake

    Trying to hustle the Italians? Fuggeddaboutit! Youse goin' to sleep wit' th' fishes!

    15Soul+ 13Charger8A 13Soul 11 200V6 07GPGXP 07Spectra 95LHS 04Imp 03Accord 02Regal 02AccordV6 01Accord 99GolfTDi 98Concorde 97Concorde 97HXCivic5m 96Concorde 95Intrepid 94Protege5m 92SHO5m 93Protege5m 92P50Taurus 91Camry5m

    “Tyranny is defined as that which is legal for the government but illegal for the citizenry.”
    ― Thomas Jefferson



  9. #8
    2.8 Liter Turbocharged V6
    Join Date
    Apr 2009
    Posts
    897
    Thanks
    1
    Thanked 8 Times in 8 Posts

    Re: UAW trust demands Fiat pay $342 million for Chrysler stake

    Quote Originally Posted by staspeterson View Post
    The option buy price was pre-negotiated back in 2009. Now that conditions have chaged VEBA wants more. I can understand that. But it may be a Phyric Victory should they win. In today's circumstances Fiat will just not exercise the option, if the Price (revised) is too high. It would more than likely allow VEBA to go public with its Chrysler shares, while bearing the cost of doing so.

    In such an event, the market would set the price, while Fiat has the voting power to control Chrysler utterly. It is highly doubtful in the depressed stock market facing us in recessionary 2013-14, VEBA would improve its situation at all. Selling all its shares privately would not help either. Especially if Fiat voted to deny issuing dividends, and simply increased Chysler's net worth and liquidity with retained earnings prudently, during the coming hard times.
    I agree and would add also that VEBA is running short of money since a long time ad its situation is worsenimg day after day.

    That said, we must consider that now as now Fiat's situation isn't going too well, and this is a point in favor of the Italian carmaker, vs VEBA.
    But Fiat doesn't need to loan money, since it's been provident in the past years for getting loans at rates lower than actuals...

    Thus, VEBA needs money and FIAT doesn't. Another point in favor of Fiat.

    Third, should Fiat be forced to go public for VEBA stake, the actual moment is really not the best one for the trust fund, but the contrary, as already said by stas.

    So, it's evident that Fiat has more cards to play than Veba, And by 2015/15 we'll see anyhow a full merger of a wealthy Fiat with Chrysler. Marchionne is non an engineer, he's a lawyer and an economist.

  10. #9
    6.2 Liter LS3 V8 TruckMan's Avatar
    Join Date
    Sep 2007
    Location
    Fort Worth, TX
    Posts
    3,540
    Thanks
    497
    Thanked 282 Times in 145 Posts
    My Ride
    2014 Sierra Denali, 2003 Yukon

    Re: UAW trust demands Fiat pay $342 million for Chrysler stake

    I hate extrotionists...
    REMEMBER GM - GOOD ENOUGH, ISN'T!!!

    "We expect taxpayers will get back all the money my administration has invested in GM," Obama said.

  11. Remove Advertisements
    GM Inside News
    Advertisements
     

Quick Reply Quick Reply

Register Now

Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.


Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may post replies
  • You may not post attachments
  • You may not edit your posts
Powered by vBadvanced CMPS v4.1.2