Fiat asks US court to help set Chrysler stake price

MILAN: Italian carmaker Fiat said on Wednesday it had asked a US court to help it define the price of a 3.3 per cent stake in Chrysler that Fiat has agreed to purchase from the workers' trust fund VEBA.

Fiat, which already owns 58.5 per cent in Chrysler, said it was seeking confirmation of the price in the Delaware Court of Chancery through its US subsidiary Fiat America.

On July 3, Fiat exercised the option to purchase a portion of the stake held by VEBA, or the Voluntary Employees Beneficiary Association.

In its statement, the Italian company said it could not agree with VEBA on the price it would need to pay for the 3.3 per cent stake.

"While it is unfortunate that we were unable to resolve the issue without the assistance of the courts, we are hopeful the matter will be resolved swiftly," Fiat said in a statement.

"We need to court assistance in the application of a specific pricing formula which was agreed in 2009 and as such unrelated to the value of Chrysler today."

VEBA owns the 41.5 per cent of Chrysler that Fiat does not. The option gives Fiat the right to buy a 3.3 per cent stake in Chrysler every six months.