Yesterday the U.S. Supreme Court has stayed the Fiat acquisition of Chrysler so that the interests of an Indiana pension fund can be heard. The stay has the potential to cause the multi-billion dollar deal to unravel and leaves tens of thousands of jobs worldwide in the lurch. All over $40 million. My guess is that the pension fund has undertaken this exercise in the hopes that it receives a payoff from the parties involved so that it may recoup its interest. It’s either that, or that they are hoping to get a negotiator from either Chrysler of Fiat to pay attention to them. I have to confess that if I were in the pension fund’s shoes I would wish for a similar outcome. However, I also only ever invested in businesses that I felt had good long-term prospects and not those on the verge of bankruptcy! All in all this is silly situation and one that hopefully is resolved out of court as the Supreme Court is notoriously naive when it comes to ruling in business cases.
Jason
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