Monday, June 8, 2009


High court blocks Chrysler sale to Fiat

Justice Ginsburg delays Chrysler sale to Fiat
On Monday June 8, 2009, 4:35 pm EDT
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WASHINGTON (AP) -- Supreme Court Justice Ruth Bader Ginsburg has temporarily delayed Chrysler's sale to Fiat. Ginsburg says in an order Monday that the sale is "stayed pending further order."

The action indicates that the delay may only be temporary.

Chrysler has said a delay could scuttle the deal. A federal appeals court in New York had earlier approved the sale, but gave opponents some time to file an appeal with the Supreme Court.

Ginsburg issued her order just before 4 p.m. EDT (2000 GMT), when Chrysler would have been free to complete the sale of most of its assets to Fiat. Ginsburg could decide on her own whether to extend the delay or ask the full court to decide. It is unclear when she or the court will act.

Meanwhile, a senior Obama administration official said Fiat would shake up management and change the culture of Chrysler if the courts allow the sale to go through. The official said management changes would go deeper than the departure of CEO Bob Nardelli and Vice Chairman Tom LaSorda. The official spoke on condition of anonymity because the changes have not been made public.

Eds: AP Auto Writer Tom Krisher contributed from Detroit

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