Jump to content



Advertisement

Advertisment

Trivia

Who's Who in Automotive History? Do you know?

6 Comments


Advertisement

Fiat Pushes Chrysler IPO To 2014

Chrysler Fiat IPO UAW 2014

William Maley
Staff Writer - CheersandGears.com
November 25, 2013
 
The Chrysler IPO will not happen this year. Forbes is reporting that Fiat has decided to not to launch the initial public offering of Chrysler before the end of 2013, citing that the short window before the end of 2013 is "not practicable."
 
Not surprisingly, the hold up on the IPO is the disagreement between Fiat and the UAW's healthcare trust. Fiat currently owns 58.5 percent of Chrysler, while the trust owns the remaining 41.5 percent. The company wants to buy the trust's share, but for how much is what the two cannot come to an agreement.
 
The IPO was going to be the way of figuring out how much the UAW's healthcare trust share was. It's not entirely clear why Fiat decided to put the IPO on hold till next year. A possibility could be that advisers working for Chrysler are discussing a valuation of about $10 to $11 billion for the IPO. Given that amount, it would mean Fiat would be paying $4.15 billion for the share owned by the healthcare trust, a figure that considered to be much higher than what Fiat is looking to pay.
 
Source: Forbes, Detroit Free Press
 
William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

2 Comments

Yup Unions would love to get all that cash and squander it. But Fiat wants bottom basement pricing. Not sure they could really afford it anyway.

    • 0
  • Quote

Better hope the sales hold up....

    • 0
  • Quote

or Sign In


Advertisement

Reviews

Review: 2015 Volkswagen CC Sport

Spending Sometime With Volkswagen's Black Sheep

Review: 2015 Toyota Camry Hybrid SE

Can A Hybrid Camry Be Sporty?


Advertisment

About Us

Founded - 2001
We Cars

Contact and Info

Pittsburgh, PA 15221
Phone: (412) 879-0455
Email: admin@cheersandgears.com