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Chrysler Could Delay IPO Until Next Year

That’s if it isn’t canceled entirely.

by on Oct.03, 2013

Chrysler CEO Sergio Marchionne with former UAW President Bob King who ran the union when it received its stake in Chrysler.

Plans for an initial public offering of Chrysler stock could be delayed until next year, Sergio Marchionne, the CEO of both Chrysler and its Italian partner Fiat now says.

Speaking to reporters during a visit to his hometown in Italy, Marchionne cautioned that he doesn’t know if work on the planned IPO can be completed before the North American International Auto Show in Detroit next January.

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An IPO is “technically possible” in 2013 though it is increasingly likely to require waiting until 2014, according to the CEO. And that’s if one takes place at all.  Though Marchionne initially expressed interest in offering Chrysler shares after Fiat came to the rescue of the U.S. automaker in 2009, he has since shied away from that approach, indicating a preference for having Chrysler completely taken over by its European ally.

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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.

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UAW Wants Chrysler to Sell Stock on Open Market

The union may force Chrysler into an IPO.

by on Jan.10, 2013

Chrysler CEO Sergio Marchionne shown here during an appearance with UAW President Bob King.

The trust fund that pays medical bills for Chrysler’s unionized retirees wants the automaker to put a value on its share by selling a relatively small block of Chrysler stock.

While General Motors, which also went through bankruptcy and a subsequent U.S. government bailout, took itself public in November 2010, Chrysler has so far avoided a long-discussed IPO.

High and Dry!

The United Auto Workers Union Retiree Medical Benefits Trust – often referred to as a VEBA — now owns 41.5% of Chrysler shares. It is asking Chrysler to start the process for an initial public stock offering. The trust wants the company to sell 16.6% of the stock owned by the trust so it can put a value on the shares.

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Chrysler Stock Offering on Indefinite Hold

“It’s not imminent,” says Marchionne.

by on Mar.07, 2012

The long-awaited Chrysler IPO isn't likely to happen anytime soon, cautions CEO Sergio Marchionne.

Analysts and potential investors who’ve been waiting for a Chrysler stock offering are going to have to keep waiting – possible for quite some time, the maker’s CEO is cautioning.

After Italian automaker Fiat effectively took control of the U.S. maker following its 2009 bankruptcy, Sergio Marchionne signaled he would stage an Initial Public Offering in relatively short order.  The IPO has since been pushed back repeatedly by Marchionne – CEO of both Fiat and Chrysler.

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In a Detroit radio interview, the Canadian-educated executive this week said he will not authorize the stock offering until the time is right.  In fact, he told an Italian newspaper last month, that Chrysler just might skip the IPO entirely.

“It’s not imminent,” Marchionne told Detroit talk station WJR when asked about when Chrysler might take itself public again.

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GM, Chrysler Retirees to Regain Some Key Benefits

Dental, vision care on list, according to union.

by on Sep.23, 2011

GM and Chrysler retirees will get some of their health care cuts restored in 2012.

Though they were largely left out when General Motors and the United Auto Workers Union hammered out a new 4-year contract last week it looks like retirees at GM – as well as Chrysler – may have something to cheer about after all.

They will see a restoration of some of the medical benefits they lost as part of earlier concessions made to help the two automakers survive their 2009 bankruptcies, according to a posting made by a UAW union local on its Facebook page.

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GM and Chrysler retirees have had to pay for their own vision and dental care for the last two years but will now get at least some of that coverage restored, according to the letter from the director of care and benefit management for the so-called VEBA program established jointly by the UAW and the makers to take over retiree health care.

The additional coverage appears limited, however, the restored vision care allowing for exams every other year.

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Fiat to Boost Chrysler Stake to 70% – Could Skip IPO

A surprise in a government filing.

by on May.10, 2011

Fiat may soon up its stake to 70% -- and beyond.

Fiat delivered a surprise in a new SEC filing, revealing plans to boost its stake in Chrysler to as much as 70% once the U.S. maker’s government loans are paid off – something that is expected to happen next month.

There is yet the possibility that Fiat could push its stake even higher by acquiring a large chunk of the Chrysler shares currently owned by a union health care trust.  And a leading industry analyst questions whether that might mean that Chrysler will skip long-discussed plans to return to public trading with an IPO later this year or in 2012.

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The Italian automaker is lining up alternative financing to replace the $7.5 billion it owes the U.S. and Canadian governments.   And, over the weekend, Sergio Marchionne, CEO for both makers, said he expects to complete the transition before the second anniversary of Chrysler’s emergence from Chapter 11 bankruptcy protection, June 10th.

That move would allow Fiat to buy an additional 16% stake in Chrysler for about $1.3 billion – bringing its holdings to 46%.  Meanwhile, the U.S. maker is expected to meet the third of three hurdles set in its federal bailout by the end of the year, a development that would add yet another 5% to Fiat’s holdings.  That would permit the Italian maker to appoint a majority to the Chrysler board, among other things.

But in a document filed with the Securities and Exchange Commission Monday, Fiat said its goal is to increase its stake to nearly 70%, by acquiring the U.S. government’s 8.6% stake in the automaker.

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