The Chrysler Buyout is still far away from any final deal with Fiat.
Fiat CEO Marchionne currently manages Chrysler and Fiat as one company, but hopes to rival competitor GM with the Chrysler buyout. U.S. VEBA healthcare trust currently owns the minority Chrysler stake of 41.5 percent that Marchionne wants to procure as part of the Chrysler buyout. Marchionne might find it a challenge, as VEBA purportedly wants over $5 billion for its shares as part of the Chrysler buyout, but may also choose to attempt to get a better price with selling shares in an initial public offering. Asked what he thought of VEBA’s price tag:
“They should buy a lottery ticket”
Talks continue, but it doesn’t appear that Marchionne is willing to move forward until they lower their asking price. It seems Marchionne is willing to go out of his way to appear nonchalant about the Chrysler buyout and his interest in the company shares, missing a scheduled appearance at a Frankfurt car show earlier this week, to which he merely excused saying “I had work to do”.
A trader on Friday commented:
“Marchionne is a good negotiator but he needs to convince VEBA, and as long as there’s no agreement there’s no certainty.”
As Chrysler is an American company, do you think Fiat should be allowed to go through with the Chrysler buyout, making Chrysler a foreign owned company?