| NEW YORK/DETROIT, Sept 25
NEW YORK/DETROIT, Sept 25 The United Auto
Workers' trust fund has tapped Deutsche Bank for
advice on how to exit its 41.5 percent stake in U.S. automaker
Chrysler Group LLC, according to two people familiar with the
The third-largest U.S. automaker on Monday was forced to
file paperwork for an IPO by the union trust, its second-biggest
shareholder mired in an escalating spat with main owner Fiat SpA
Fiat, which owns 58.5 percent of Chrysler, wants to take
full control and buy out the rest of the stock owned by VEBA, a
healthcare trust fund affiliated with the United Auto Workers
union, but has balked at the more $5 billion being demanded.
In response, VEBA has exercised a right enshrined in
Chrysler's 2009 government-financed bankruptcy to go forward
with an initial public offering, stepping up pressure on Sergio
Marchionne, chief executive of both automakers, to reach a deal.
The trust is being advised by Deutsche Bank as it weighs
whether a gradual sale of shares through an IPO would generate
more proceeds than an outright sale of the entire stake to Fiat,
the people familiar with the matter said. They asked not to be
identified because the matter is not public.
VEBA did not immediately respond to requests for comment.
Brock Fiduciary, which has managed the trust's holdings in
Chrysler since 2010, declined to comment. Deutsche Bank also
declined to comment.