Posted Jan 10th 2013 5:00PM
The United Auto Workers union is pushing Chrysler to sell 16.6 per cent of its stock to investors in an attempt to establish the value of the shares. The UAW is currently locked in a lawsuit with Chrysler parent company Fiat over how much the Italian automaker should pay to buy shares from the trust fund. Last year, Fiat told the trust it intended to exercise its right to purchase 3.3 per cent of the union's shares at issue. But the union contended the 54,154 shares were worth closer to US$381 million instead of the US$155 million Fiat offered.
Currently, the UAW owns 41.5 per cent of Chrysler while Fiat holds 58.5 per cent of the company. Currently, it's unclear whether the UAW could force Chrysler to put the shares on the open market. Doing so would be the first step toward a much-anticipated initial public offering. Chrysler has said it will comply with its shareholders agreement, and Fiat has echoed that tune. According to The Detroit Free Press, the UAW Retiree Medical Benefits Trust has declined to comment on the situation.