Chrysler Appeals IPO Filing
Sources confirm that Chrysler feud has triggered an IPO filing by the company.
According to the reports, on Monday, Chrysler Group LLC has filed for an initial public offering. It is being said that the company was forced to take such an action as its Italian majority owner and its main union did not agree on the company's value.
Fiat SpA is the majority owner because it owns a 58.5% stake in Chrysler. It is against the share sale and wants to own the company outright. But the No. 3 Detroit auto maker's main union, the United Auto Workers union health trust which holds a 41.5% stake in the auto company, has suggested to offer the shares to the public following the negotiations regarding sale of them to Fiat.
Chrysler has clearly revealed in its Monday filing that the failure of Fiat in getting the control would unwind the deal, the so-called centerpiece of the Obama administration's 2009 auto industry rescue.
If estimations and expectations of the analysts and others familiar with the situation are studied, chances are higher that Fiat will try to sign a private deal with the UAW.
Fiat Chief Executive Mr. Sergio Marchionne, is looking forward at owning Chrysler outright to merge the two companies into a single automaker, say sources.