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By | November 2013
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ld's seventh-largest carmaker, but has not managed to agree a price with a retiree healthcare trust, which is affiliated to the UAW, and which owns 41.5 percent of Chrysler.

The unions believe a merger "is indispensable and will create growth opportunities for all of the group's factories and benefits for workers," Ferdinando Uliano, head of the Italian FIM-CISL union, said in a statement after a trip to the United States to meet the UAW.

Fiat, which has 58.5 percent of Chrysler, and the healthcare trust, Veba, are thought to be far apart on the price.

Veba is believed to be holding out for the highest possible payout of nearly $6 billion, while Fiat is thought to value the stake at far less and does not want to overpay.

Neither side has commented about the price negotiations.

The UAW became Chrysler's second-largest sharehold
Oct 24 (Reuters) - The United Autoworkers' Union (UAW) and an Italian counterpart strongly back plans for a merger between Fiat and U.S. unit Chrysler, the Italian union said on Thursday, lending powerful support for a deal which has got bogged down on price.

Sergio Marchionne, head of both Fiat and Chrysler, is keen for a deal that would create the world's seventh-largest carmaker, but has not managed to agree a price with a retiree healthcare trust, which is affiliated to the UAW, and which owns 41.5 percent of Chrysler.

The unions believe a merger "is indispensable and will create growth opportunities for all of the group's factories and benefits for workers," Ferdinando Uliano, head of the Italian FIM-CISL union, said in a statement after a trip to the United States to meet the UAW.

Fiat, which has 58.5 percent of Chrysler, and the healthcare trust, Veba, are thought to be far apart on the price.

Veba is believed to be holding out for the highest possible payout of nearly $6 billion, while Fiat is thought to value the stake at far less and does not want to overpay.

Neither side has commented about the...

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