Fiat Says Chrysler Will Not Proceed With IPO This Year
Fiat SpA (F), the majority owner of Chrysler Group LLC, said the American automaker will not carry out an initial public offering this year.
The Chrysler board determined after speaking with the carmaker’s underwriters that a share sale in 2013 is no longer feasible, Turin, Italy-based Fiat said in a statement today. Chrysler will continue to work on the IPO and may move forward with the process in the first quarter.
“No assurance can be given as to whether or when an offering will be launched,” Fiat said in the statement. “Any launch will be subject to market conditions and other relevant considerations.”
A United Auto Workers trust and Fiat are disputing the company’s value as Sergio Marchionne, chief executive officer of both carmakers, seeks to buy the UAW fund’s 41.5 percent stake. The trust is working to determine whether to sell its holding to Fiat directly or press forward with an IPO.
To contact the reporter on this story: Tommaso Ebhardt in Milan at firstname.lastname@example.org
To contact the editor responsible for this story: Chad Thomas at email@example.com