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MORE: Fiat to Buy Remaining Stake in Chrysler It Doesn’t Own 2014-01-01 18:54:24.652 GMT
By Louisa Fahy Jan. 1 (Bloomberg) -- Fiat to pay $3.65b for VEBA Trust’s equity membership interests in Chrysler representing 41.46% stake. * Fiat to fund purchase with cash on hand * Purchase consists of special distribution of ~$1.9b payable by Chrysler to its members and $1.75b paid to VEBA Trust at closing * Chrysler, UAW also in memorandum of understanding under collective bargaining agreements to provide for added contributions by Chrysler to VEBA Trust totaling $700m in 4 equal, annual isntallments; initial payment to be made on closing with Fiat * UAW agrees to certain commitments to continue to support industrial ops at Chrysler and further implementation of Fiat-Chrysler alliance * Fiat, VEBA Trust agree to dismiss lawsuits before Delaware Court of Chancery over call option agreement * Fiat doesn’t expect the need to raise capital for deal Link to Statement:NSN MYQJ7P3PR6RK <GO>
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--Editor: Jeran Wittenstein
To contact the reporter on this story: Louisa Fahy in Washington at +1-202-624-1942 or lnesbitt@bloomberg.net
To contact the editor responsible for this story: Louisa Fahy at +1-202-624-1942 or lnesbitt@bloomberg.net