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Judge Donald Parsons rejected Fiat’s argument that a tranche of 54,000 shares was worth $140 million, in a 448 page decision in which he also refused to order the only non-Fiat owner of Chrysler shares to sell them for what is now a bargain price. Fiat was, according to a 2009 agreement, entitled to buy several “tranches” (collections of shares) of Chrysler stock from the union pension/health benefits fund, which relies on the income to provide benefits to retirees. The “defined benefit” pensions were originally considered to be part of employees’ salaries, with the advantage of being essentially untaxed. Fiat argued that the shares had been set at $140 million, but the judge stated earlier that he found the formulas highly complex and confusing, and that Fiat’s argument was not as clear as the company said. The 2009 pricing agreement only covers 40% of the trust’s holdings; the rest would..
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