Chrysler is ready to file IPO documents this week

Article by Anita Panait, on September 17, 2013

Chrysler Group LLC is prepared to submit documents for its initial public offering this week, chief executive Sergio Marchionne was quoted by the Financial Times as saying. Marchionne, who is also CEO of Chrysler parent Fiat, disclosed that “all the work, all the preparation, drafts have gone through” and the carmaker should be ready to file IPO documents within the third week of September.

Marchionne said last Friday that he did not think that an agreement to acquire Chrysler stake that Fiat does not already have is still far off. The stake is owned by UAW’s healthcare trust VEBA. Marchionne had intended to buy out the stake in Chrysler and merge the US carmaker with Fiat, thereby creating seventh-largest auto group in the world.

Marchionne was quoted as saying by the FT that an IPO would delay efforts to combine Fiat and Chrysler. Discussions to acquire VEBA's 41.5-percent holdings in Chrysler have stalled since Marchionne believes the healthcare trust's price values the US carmaker at more than it is worth.

Sans any agreement, VEBA intends to sell a part of its stake in an IPO, and divest the rest in stages over time. In January 2013, VEBA exercised a legal right to demand that 16.6 percent of Chrysler be listed.  The listing could occur this year, the FT said.

Marchionne told the FT that there is a need to determine the stakes’ value, as VEBA has been clear that it is not a long-term stakeholder at Chrysler. He remarked that since VEBA want to “monetize,” Fiat has to find a way that the determination would not lead to what he considers as “exceptionally high or abnormal expectations of value." In court documents, Fiat valued Chrysler at $4.2 billion, while VEBA valued that carmaker to be as much as $10.3 billion.

If you liked the article, share on:

Topics: chrysler, ipo

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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