In Chrysler Bailout, Taxpayers Likely To Lose Up To $1.3 Billion: Treasury

[MrDiaz]

Source: Huffington post

DETROIT (Deepa Seetharaman) - The U.S. and Canadian governments exited their investments in Chrysler Group LLC on Thursday, allowing Italy's Fiat SpA (FIA.MI) to become the automaker's majority stakeholder.

Fiat now owns 53.5 percent of Chrysler on a fully diluted basis, the Auburn Hills, Michigan-based company said in a regulatory filing on Thursday. Fiat is on track to hold 58.5 percent of Chrysler by the end of the year.

Fiat also now has the right to appoint a majority of the company's board, Chrysler said in the filing.

A health care trust affiliated with the United Auto Workers and known as the VEBA holds the remaining shares of Chrysler. The company and the union plan to begin negotiations on a new four-year contract on Monday.



Read more: http://www.huffingtonpost.com/2011/07/21/chrysler-bailout-taxpayers-treasury_n_905999.html