Fiat Increases Chrysler Stake to 61.8 Percent, But Won’t Get to 100 for Years
You probably will be able to set your watch by it: Every six months until 2016, Fiat is entitled to buy another 3.32 percent of Chrysler from the Pentastar’s other primary owner, the autoworkers’ VEBA—the independent trust that manages retirement and benefits funds. And every six months, we expect, that’s what Fiat will do. The Italian company has announced that it will take its first 3.32 percent of Chrysler off of the VEBA’s hands for an as-yet-undisclosed price. This transaction will increase the Italian company’s stake in the Chrysler Group to 61.8 percent.
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The terms of the contract between Fiat and the VEBA, drawn up when Fiat took a stake in the bankrupt Chrysler Group in 2009, specify that this arrangement should continue until 2016. It’s possible that the two could negotiate for Fiat to buy up the rest of the VEBA’s share sooner than that, which now sits at 38.2 percent, but Chrysler/Fiat CEO Sergio Marchionne has told Automotive News not to expect any big news this year.