Sergio Marchionne says he is working ‘diligently’ to set up Chrysler IPO

Article by Anita Panait, on November 4, 2013

Fiat-Chrysler chief executive Sergio Marchionne said he is working "diligently" on preparing the initial public offering of the American carmaker. "We have filed, it's a process we will work at diligently," Marchionne remarked, adding that they are ready to execute the Chrysler IPO within this year.

According to Marchionne, Fiat was currently not holding discussions with UAW union healthcare trust VEBA to acquire up the 41.5 percent stake in Chrysler that it does not already own.

Fiat and Marchionne are looking to acquire VEBA’s Chrysler stake to pave way for a merger between the two carmakers to create a company large enough to compete against global carmakers like Toyota Motor Corp., General Motors and Volkswagen Group. Fiat and VEBA, however, cannot seem to agree with the value of the shares.

Marchionne is offering to the buy the stake at least $1 billion less than the value VEBA is asking, leading to the possibility of an IPO. Marchionne is hoping that the IPO will lead to a valuation that is close to his financial assessment. Marchionne remarked that they are “now intent on expecting the IPO.” He is hoping to complete the public share sale by the end of 2013.

The CEO quipped that he has no plans to sell some assets in relation to the planned eventual Chrysler buyout. "I'm not selling anything, nor do I think we need to do so," he remarked. Fiat recently disclosed that it expects to sell around about 1.5 million cars and light trucks in Europe in 2013. It also expects to sell about 4.4 million combined Fiat-Chrysler vehicles globally.

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