Fiat to Wait for Verdict on Share Valuation

By Marc Castro

May 30, 2013 10:48 AM EDT

In a statement, Fiat Chairman John Elkann said that the Italian car manufacturer intends to await the resolution of its ongoing legal dispute VEBA, the US healthcare trust fund for the United Auto Workers union. Once the resolution has been promulgated, the company would commence merger with Chrysler.

According to Elkann, "We intend to wait for the Delaware verdict before moving forward on the merger with Chrysler."

There was no statement made though ruling out a possible out of court settlement with VEBA before the verdict is reached. The case before the Delaware court centers on the price determination of the 41.5% shareholdings held by VEBA in Chrysler. 

He added, "We don't rule it out." The verdict is said to be due ninety days after the April 25 hearing conducted to hear the arguments from both parties.

Fiat currently owns 58.5% of Chrysler and the merger of the two carmakers have been on the top of the agenda of Sergio Marchionne, CEO of both Chrysler and Fiat.

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