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Fiat says no to Chrysler IPO in 2013

Monday, November 25, 2013 - 00:57

Nov. 25 - Chrysler's two owners, Fiat and the union trust, are clashing over when to do an IPO. The trust reportedly wants to do the offering in early December. Fred Katayama reports.

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Chrysler's two owners are wrestling over when to do an IPO. Fiat says it won't launch a public offering this year. But the other owner, the United Auto Workers' health trust, reportedly wants to move up the IPO to the first half of next month. The market for IPOs is vibrant now, so an early IPO could possibly result in a higher price for the union's shares. Fiat wants to buy the union's stake privately. But it won't fork up the more than $5 billion the trust demands. The trust is betting the market will give it a higher price tag. So it's using its right to have Chrysler do a public offering. The Journal says the price range considered by the bankers implies the trust's stake is worth $3.7 to $5 billion. Fiat would only say that it expects Chrysler to pursue an IPO in the first quarter of next year. Fiat likely wants to put off the offering so that it can try to work out a private deal.

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Fiat says no to Chrysler IPO in 2013

Monday, November 25, 2013 - 00:57