Willkie Advises Fiat in $1.27 Billion Acquisition of Additional Stake in Chrysler

April 22, 2011

Fiat acquires an additional 16 percent stake in Chrysler, raising its ownership in the U.S. automaker to 46 percent.

On April 21, Willkie client Fiat S.p.A. announced that it has reached an agreement with Chrysler Group LLC and the UAW Retiree Medical Trust, The United States Department of the Treasury and Canada CH Investment Corporation regarding the exercise by Fiat in full of the Incremental Equity Call Option to which Fiat is entitled under Chrysler’s Operating Agreement.  Fiat will pay $1.27 billion for an additional 16 percent stake in Chrysler, raising its ownership in the U.S. automaker to 46 percent.  Exercise of the option is subject to Chrysler paying in full its debt to the U.S. and Canadian governments.  Fiat acquired its initial stake in Chrysler upon Chrysler’s emergence from bankruptcy in 2009.

The deal was handled by partners Robert Stebbins, Matthew Feldman, Leslie Mazza, Richard Reinhold, Richard Bernstein and James Dugan; special counsel Catherine Harrington; and associates Michael Brandt, Delano Ladd, Brandon Ladoff, Joseph Antignani, Tyler Ladner, Kristin McNamara Pauley and Nelson Wagner.  In 2009, Mr. Feldman was recruited to serve as Chief Legal Advisor to the Obama administration’s Task Force on the Auto Industry.