VEBA pegs Chrysler stake at USD3.6 billion
The healthcare trust affiliated with the United Auto Workers union had finally placed a price tag on the worth of its shares in Chrysler Group. It pegged the price at USD3.6 billion by end of 2012 and USD2.7 billion in 2011. This information was gleaned from a Labor Department filing of the firm.
The trust is Voluntary Employee Beneficiary Association or VEBA. It owns 41.5% of Chrysler while Fiat ownes 58.5%.
According to Fiat and Chrysler CEO Sergio Marchionne, he wants Fiat to purchase the VEBA shares to complete it privatization of the the beloved car manufacturer. The process though had become complicate as VEBA forced the hand of the company to undertake an IPO to gauge the price interest over the shares for their violation purposes. There is also an ongoing trial for the proper evaluation of the shares sought to be bought by Fiat.
In the documents filed with the Labor Department, the Chrysler VEBA healthcare trust had a total net assets as of 2012 a total of US10.29 billion, an increase of 18% from the start of 2013.