Fiat’s Move for Control: A Chrysler IPO?
Big news coming from Camp Fiat (FIATY.PK) on Monday: the Italian parent company of Chrysler — and, by extension, the Jeep and Dodge brands — is reportedly filing the paperwork necessary for an initial public offering of its American assets, the trio of the aforementioned brands.
“U.S. carmaker Chrysler plans to file documents this week that would allow its minority investor to sell shares in a stock market listing, bringing to a head a battle with majority owner Fiat which wants to take full control of the business,” Reuters says.
Fiat is hoping to take control of the 41.5 percent stake that is currently held by VEBA, a health care trust that has significant ties to the United Auto Workers union. VEBA has made it clear in the past that it’s not content with the price Fiat is offering for the stake. The Italian company owns the remaining 58.5 percent in Chrysler.
Fiat “will be hoping the stock market’s valuation of the U.S. carmaker will show its existing offer is VEBA’s best option,” Reuters reports.