Sources: Delphi Automotive ready for an initial public offering (IPO)

Article by Christian A., on May 19, 2011

Delphi Automotive LLP has acquired the services of Goldman Sachs Group Inc. and JPMorgan Chase & Co. to manage an initial public offering that could raise more than $1 billion, according to a source.

Troy-based Delphi, which was formerly the largest auto-parts maker in the U.S., has also reportedly hired Bank of America Corp., Citigroup Inc., Barclays Plc and Deutsche Bank AG to be its underwriters. The offering is scheduled to take place in the third quarter.

Sources added that the filing may come next week and the IPO may put the value Delphi at around $10 billion. When Delphi exited bankruptcy restructuring in October 2009, it had four classes of shares.

Lenders like private-equity firms Elliott Management Corp. and Silver Point Capital LP bought majority of the original Delphi and still maintain a controlling interest after Delphi moved to buy back stakes from former parent General Motors Co. and the Pension Benefit Guaranty Corp. last March.

David Whiston, an equity analyst with Morningstar Inc. in Chicago, said that Delphi is mostly owned by private equity and “they're not going to hold it forever.” He believes that the company will “sell at a reasonable profit and monetize their investment."

To buy back the stakes and to make its capital structure simpler, Delphi paid $3.8 billion to GM and $594 million to the PBGC. According to Delphi’s Web site, its year-end financial statement indicates that GM's class of shares in Delphi was valued at $2.08 billion as of Dec. 31.

Topics: delphi, ipo

If you liked the article, share on:

Comments

Recommended

In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 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