Fiat Pushes Chrysler IPO To Next Year
Italian car company Fiat Group said on Friday that they will not be launching an initial public offering for Chrysler until next year. Fiat said that timing is not “practicable” for an IPO by the end of the year. The issue with the IPO is that Fiat owns 58.5% and a healthcare trust for retired autoworkers own the remaining 41.5%. The two organizations have a disagreement about the pricing.
Fiat and Chrysler CEO Sergio Marchionne considered a plan to buyout the ownership in the healthcare trust. Fiat can exercise options that enables them to buy almost 17% of the trust’s stake by the end of 2014, but this deal could be blocked due to a disagreement about the price.
When Chrysler goes public, it would be the first time since all big 3 U.S. auto companies have been publicly trading since at least 2007.