{"id":47916,"date":"2012-03-07T11:58:35","date_gmt":"2012-03-07T16:58:35","guid":{"rendered":"http:\/\/www.thedetroitbureau.com\/?p=47916"},"modified":"2012-03-07T11:58:35","modified_gmt":"2012-03-07T16:58:35","slug":"chrysler-stock-offering-on-indefinite-hold","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2012\/03\/chrysler-stock-offering-on-indefinite-hold\/","title":{"rendered":"Chrysler Stock Offering on Indefinite Hold"},"content":{"rendered":"
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The long-awaited Chrysler IPO isn't likely to happen anytime soon, cautions CEO Sergio Marchionne.<\/figcaption><\/figure>\n

Analysts and potential investors who\u2019ve been waiting for a Chrysler stock offering are going to have to keep waiting \u2013 possible for quite some time, the maker\u2019s CEO is cautioning.<\/p>\n

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.\u00a0 The IPO has since been pushed back repeatedly by Marchionne \u2013 CEO of both Fiat and Chrysler.<\/p>\n

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Stay in the Know!<\/figcaption><\/figure>\n

In a Detroit radio interview, the Canadian-educated executive this week said he will not authorize the stock offering until the time is right.\u00a0 In fact, he told an Italian newspaper last month, that Chrysler just might skip the IPO entirely.<\/p>\n

\u201cIt\u2019s not imminent,\u201d Marchionne told Detroit talk station WJR when asked about when Chrysler might take itself public again.<\/p>\n

That\u2019s not a particular surprise to many industry observers considering the poor reception automotive stocks have gotten in recent months.\u00a0 While it has bounced back from the lows of late 2011, Ford Motor Co. has been trading in the $12 range this week, well below its $16.18 52-week high.\u00a0 As for General Motors, it has been slowly clawing back last ground, but at around $25 this morning, it is well below the $33 strike price set at its own November 2010 IPO.<\/p>\n

It is, of course, possible that the resurgent economy, rebounding U.S. automotive market and the general surge in stock prices could provide impetus to Chrysler \u2013 and to GM, which is also waiting to sell off the one-third stake in the company still held by the federal government.<\/p>\n

But it is also possible Marchionne might skip taking Chrysler public altogether.<\/p>\n

Fiat has steadily increased its holdings since receiving 20% of Chrysler after the bankruptcy.\u00a0 It now holds 58.5% \u2013 and has advised government regulators it is interested in pushing that to 70% or more by acquiring some of the shares now held by the United Auto Workers Union\u2019s so-called VEBA health care trust.<\/p>\n

Marchionne last month told Italy\u2019s Corriere della Sera newspaper that one option would be to buy out the VEBA shares entirely.\u00a0 Or he could formally merge Fiat and Chrysler in a way that effectively dilutes the union\u2019s remaining shares.\u00a0 One way or the other, the UAW is expected to eventually want to cash out.<\/p>\n

But an IPO is not off the table, Marchionne said during his radio interview \u2013 a transcript of which has been published by Chrysler.<\/p>\n

\u201cWe have now created a corporate governance system that\u2019s effectively capable of handling a public U.S. listed company,\u201d he stressed.<\/p>\n

A continued upturn in the stock market could force Marchionne\u2019s hand.<\/p>\n

Separately, Chrysler revealed in its annual report that the CEO received neither salary nor stock awards last year.\u00a0 But he did get $4.5 million in salary and other fees from Fiat.\u00a0 In 2010, the American side of the trans-Atlantic alliance awarded Marchionne $600,000 in stock awards.<\/p>\n

Two Chrysler executives received more than $1 million in compensation in 2011 \u2013 requiring government approval as part of the maker\u2019s federal bailout.\u00a0 Richard Palmer, Chrysler\u2019s senior vice president and chief financial officer, earned $1.18 million in salary, stock and stock options, while General Counsel Holly Leese\u2019s compensation came to $1.15 million.<\/p>\n","protected":false},"excerpt":{"rendered":"

The long-awaited Chrysler public stock offering “isn’t imminent,” cautions CEO Sergio Marchionne and, indeed, might not happen at all. Why, and what are the alternatives? TheDetroitBureau.com has this report.<\/p>\n","protected":false},"author":2,"featured_media":46191,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[8],"tags":[],"make":[],"post-state":[],"category_old":[151],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/47916"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=47916"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/47916\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/46191"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=47916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=47916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=47916"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=47916"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=47916"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=47916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}