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| Subject: Chrysler sets IPO process in motion | |
Author: Monday 23/9/2013==new week 13 Calendar 39 | [ Next Thread |
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] Date Posted: 10:16:30 09/24/13 Tue In reply to: Alcoa Hewlett Packard Bank of America=The Dow changes take effect with the close of trading on Friday Sept. 20. 's message, "Tuesday Money Morning September 10, 2013 ==Nike replaces Alcoa==Visa replaces Hewlitt Packard==Goldman Sachs Gropu replaces Bank of America" on 23:36:50 09/20/13 Fri ............Chrysler sets IPO process in motion AAP – 7 minutes ago ....Email 0Recommend0Tweet0Share0Print..... Chrysler Group LLC, against the wishes of CEO Sergio Marchionne, has took the first steps towards selling its shares on a public stock exchange and becoming a publicly traded company. The Auburn Hills, Michigan, vehicle manufacturer on Monday filed a registration statement with the US Securities and Exchange Commission (SEC). The company says the number of shares to be offered and the price range for the offering have not yet been determined. It typically takes the SEC several weeks or months to review a registration statement. Marchionne has said he expects the car manufacturer will be able to conduct an IPO before the end of this year, but likely will wait until early next year because market conditions for stock offerings are not good during the holidays. Chrysler in January was forced to begin preparing for an IPO when the United Auto Workers' Retiree Medical Benefits Trust sent a registration demand to the automaker asking Chrysler to register 16.6 per cent of Chrysler shares for sale. In its statement on Monday, Chrysler said the common shares will be sold by the UAW Trust and the trust will receive all of the net proceeds from this offering. JPMorgan Securities is the lead adviser and, if the offering goes through, will be the lead broker for the offering. The UAW trust, which owns 41.5 per cent of Chrysler's shares, is embroiled in a legal standoff with Fiat SpA, which owns 58.5 per cent of Chrysler, over the value of Chrysler's shares. The public stock offering is a way for the trust to establish a value for its shares. If Fiat and the UAW trust reach an agreement on the value of the shares before the offering, it could still be called off. Marchionne has been trying since 2009 to complete a full merger of Italian automaker Fiat with Chrysler. Fiat, which Marchionne also heads, has been trying to exercise a clause in its operating agreement with the UAW trust to buy another 3.3 per cent of Chrysler shares every six months since July 2012 and has made offers for a total of 9.9 per cent of additional Chrysler shares. The UAW trust has argued that Fiat has not offered enough. There is a gap of about $US200 million between what Fiat offered for the first 3.3 per cent increment and what the UAW trust says it's worth. The UAW trust needs to convert its holding to cash because it is responsible for health care insurance for about 63,000 Chrysler retirees. The higher price it can get, the more sustainable that coverage will be. An IPO complicates Marchionne's plan to fully merge Fiat and Chrysler because Chrysler's shares would be traded in the US while shares of Fiat would continue to be traded on the Milan Stock Exchange. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
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