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Fiat offers to buy more of Chrysler

AUBURN HILLS, Mich., Jan. 4 (UPI) -- Fiat said it was ready to buy another piece of U.S. automaker Chrysler.

The Italian company said it was offering the United Auto Workers Retiree Medical Benefits Trust $198 million for another 3.3 percent of the company that it began buying when Chrysler went into bankruptcy in the summer of 2009.

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The Detroit Free Press reported Friday the purchase, if it goes through, would bring Fiat's stake in Chrysler to 65.17 percent.

There is, however, a major hurdle to overcome before a deal can be struck – a lawsuit between the trust and Fiat that needs to be resolved to settle a disagreement between the two parties over the value of Chrysler shares.

The difference is large and the final price is expected to be settled by a court in Delaware, the newspaper said.

In July, Fiat offered the trust fund, known as VEBA, $155 million for 54,154 shares. VEBA, however, said the shares are worth about $381 million.

Fiat has an agreement in which it can purchase 3.3 percent at six-month intervals.

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