Fiat CEO Says Chrysler to File for Listing This Week: FT

Monday, 16 Sep 2013 07:35 AM

 

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Chrysler is ready to file documents for its initial public offering this week, the chief executive of both the U.S. carmaker and its parent Fiat told the Financial Times on Monday.

"All the work, all the preparation, drafts has gone through ... we should be ready to file [IPO documents] within the third week of this month," CEO Sergio Marchionne was quoted as saying.

On Friday, Marchionne said he did not think Fiat was getting any closer to an agreement to buy the remaining stake in its U.S. unit Chrysler from the U.S. VEBA healthcare trust.

Marchionne had planned to buy the rest of Chrysler and merge it with Fiat to create the world's seventh-largest car group.

An IPO would delay efforts to streamline the carmakers, Marchionne was quoted as saying.

Talks over VEBA's 41.5 percent stake have stalled because Marchionne believes the United Auto Workers-affiliated trust's price values Chrysler at more than it is worth.

In the absence of an agreement, the trust plans to sell a portion of its stake in an IPO, and divest the rest of its stake in stages over time.

The listing could take place this year, the FT said.

"We need to go through this process of determining value," Marchionne told the FT.

"[The trust] have been very clear that they are not long-term holders of the assets. They want to monetize so we need to find a way that ... does not create what I consider to be exceptionally high or abnormal expectations of value," he said.

© 2014 Thomson/Reuters. All rights reserved.

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