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Chrysler Files for IPO

Stock offering follows failure to resolve dispute between Fiat and the UAW.

by on Sep.23, 2013

Fiat/Chrysler CEO Sergio Marchionne returns to the IPO alternative as his dispute with the UAW drags on.

Chrysler Group LLC is filing for an IPO, a step that Sergio Marchione, the CEO of both Chrysler and its Italian ally Fiat, had hoped to avoid.

The move is a step of last resort, the result of an ongoing dispute between Fiat, which owns a majority stake in the U.S. maker, and the union retirement health care trust that holds the remaining 41.5% stake in Chrysler. The two are currently battling in the Delaware courts over the value of the so-called VEBA’s holdings in the once-bankrupt American automaker.

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The specific price, as well as the number of shares to be auctioned off, have yet to be set.  JPMorgan will serve as the investment banker putting together the Initial Public Offering, which will see Chrysler traded publicly for the first time since it entered a “merger of equals” with Germany’s Daimler-Benz in 1998.


GM Looking to Rebuild Its Role in Auto Financing

Maker could abandon partnership with Cerberus.

by on May.12, 2010

An Ally no more?

Four years after selling a controlling stake in its finance subsidiary, GMAC, General Motors is reportedly looking for a way to get back into the auto loan business.

That could lead it to buy out Cerberus Capital Managerment, its private equity partner in what is now known as Ally Financial, Inc., or the Detroit automaker could set up an entirely new “captive” finance subsidiary, according to well-placed sources.

A senior GM official dismissed the story as “speculation,” though numerous company officials admit the automaker has been increasingly frustrated with its old lending unit and the way it has been managed by Cerberus since the 2006 sale.

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Awash in debt run up by bad housing loans, the former GMAC has stayed afloat only with the assistance of $17.2 billion in loans from the U.S. Treasury, which now owns a 56.3% stake in the lender.