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Technology Stocks : American Automobile Industry: Can it survive?
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From: Glenn Petersen11/25/2013 10:13:06 AM
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No I.P.O. for Chrysler This Year, Fiat Says

By DEALBOOK
New York Times
November 25, 2013, 8:57 am

Fiat said on Monday that any initial public offering for Chrysler would not take place before the end of this year.

The company had been moving forward with plans for the offering after talks stalled between Fiat and a United Automobile Workers retiree health care trust on the purchase of the trust’s 41.5 percent stake in Chrysler. The trust’s administrators thought Fiat’s offer, thought to be about $3 billion, was too low and wanted to go directly to the stock market to sell a portion of its shares.

But on Monday, Fiat said in a statement that it had consulted with the offering’s prospective underwriters and had concluded that it would not be possible this year. Chrysler will continue to work on the I.P.O. and may proceed in the first quarter of 2014, it said.

“No assurance can be given as to whether or when an offering will be launched,” Fiat said in the statement. “Any launch will be subject to market conditions and other relevant considerations.”

The stock offering has been seen as a negotiating tool for Sergio Marchionne, Fiat’s chief executive, who wants full control of Chrysler. He has been gambling that the open market will set a price for Chrysler’s shares that will prompt the U.A.W. trust to turn back to Fiat for a better deal. If the stock offering is ever priced at a higher per-share value, however, Fiat may be forced to relent and offer more.

Shares of Fiat fell in afternoon trading in Milan.

dealbook.nytimes.com
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