This week, Fiat announced that a Chrysler share sale in 2013 is no longer feasible. The Italian carmaker that holds a majority stake in Chrysler issued a statement saying the U.S. automaker will continue to work on the IPO (initial public offering), which may happen in the first quarter next year.
“Fiat S.p.A. today announced that the Board of Directors of Chrysler Group LLC, having consulted with the prospective underwriters for Chrysler Group’s initial public offering and counsel, has determined that it will not be practicable for Chrysler Group to launch and complete an initial public offering prior to the end of 2013,” reads the release.
“No assurance can be given as to whether or when an offering will be launched as any launch will be subject to market conditions and other relevant considerations,” the statement adds.
Fiat and VEBA (The Voluntary Employees’ Beneficiary Association), a United Auto Workers trust, are disputing Chrysler’s value as the Italian carmaker seeks to buy the UAW fund’s 41.5 percent stake as cheaply as possible. On the other hand, the trust has two options – to sell its holding to Fiat directly or to go through with an IPO.
Fiat wants to gain complete control of Chrysler in order to merge the two companies into a global automotive player. In case it doesn’t get the remaining Chrysler stock, Fiat threatened to reconsider the benefits and costs of expanding the relationship with the U.S. automaker.
By Dan Mihalascu
Note; the car pictured above is the Chrysler 700C
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