Fiat can’t wait for a full merger with now again cash-rich and profitable Chrysler, but it will wait until its legal dispute with the UAW’s VEBA healthcare trust has been resolved. “We intend to wait for the Delaware verdict before moving forward on the merger” with Chrysler, Fiat Chairman John Elkann told Reuters.
“The verdict is due 90 days from the April 25 hearing,” Elkann told Reuters. Elkann did not rule out an out of court settlement with VEBA ahead of the verdict, which will help determine the price of the 41.5 percent stake in Chrysler held by the trust.
Elkann said Fiat was not planning to spin off luxury sportscar maker Ferrari to finance the takeover. He did not mention Alfa. Elkann said the new company’s name would include both Fiat and Chrysler (FiatChrysler anyone?), and that Sergio Marchionne will stay on past 2015 to run the combined group.