Fiat already had around 65 percent stake in Chrysler and now they have increased it marginally with some additional investment recently.
Fiat has acquired an additional 3.3 percent stake in the latter which means the Italian company now holds a stake of 68.49 percent. The company has always shown interest to get the full control of Chrysler and this time they have managed to get this additional stake by exercising their option to purchase this stake.
After taking into consideration this additional investment, the Italian company has now exercised three of its six-monthly options and has raised its stake to 68.49 percent. Until July 2014, the company has the right to further increase its stake to 75 percent.
The VEBA retiree medical benefits trust is in control of the remaining stake but the two sides are not able to come to agreement as far as pricing is concerned. Both of them are currently in litigation in a Delaware court over the pricing issue.
Where Fiat values the rest of stake of Chrysler at 4.2 billion USD, VEBA says that the same is worth a whopping 10.3 billion USD, which is quite a big difference and now wonders the two sides can never comes to an agreement.
