Chrysler has filed initial public offering (IPO) documents

Article by Anita Panait, on September 24, 2013

Chrysler Group has submitted documents pertinent to an initial public offering (IPO), which is expected to determine the real value of the carmaker, thereby resolving a row between Fiat and a United Auto Workers retiree health care trust fund. Chrysler, however, says that an IPO may "prevent or delay" aims of Fiat-Chrysler chief executive Sergio Marchionne to merge the two carmakers.

Fiat currently owns 58.5 percent of Chrysler while the trust fund, known as VEBA, holds the rest. In an S-1 filing with the United States Securities and Exchange Commission, Chrysler said it was informed that Fiat is reconsidering the “benefits and costs of further expanding its relationship” with the US carmaker as well as the terms on which Fiat would continue the “sharing of technology, vehicle architectures and platforms, distribution networks, production facilities and engineering and management resources."

VEBA decided in January 2013 to sell part of its 41.5 percent stake in Chrysler in an IPO. Analysts and bankers see the IPO filing as a move by VEBA to get a better offer from Fiat, with many betting that the public offering will never occur. Marchionne said in mid-September that an IPO, should it occur, would take place in the first quarter of 2014.

Marchionne has been instrumental in leading Chrysler’s comeback that has raised its valuation to around $10 billion, according to some analyst estimates. VEBA adviser Brock Fiduciary is pushing a price tag of over $5 billion for Chrysler, representing the highest possible payout under the terms of the carmaker’s bankruptcy agreement. According to the SEC filing, VEBA is offering $100 million of shares. [source: Chrysler]

Topics: chrysler, ipo

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries