Fiat and Chrysler are still trying to find solutions on how to merge the two companies sooner.
Currently Fiat owns 58.5% of Chrysler and it’s been some time now since the Italian automaker has been struggling to fully acquire the US company. When reporters asked Fiat Chairman John Elkann whether the automaker would prefer a Chrysler initial public offering or the direct acquisition of the other 41.5%, he said that the company’s target is just to merge the companies no matter how.
“There are various negotiations under way, the important thing is to find a way to create a single group,” Elkann said on the sidelines of a car exhibition.
Last week, Fiat CEO Sergio Marchionne said the automaker might agree with VEBA on a price for the 41.5% stake in Chrysler. Fiat and VEBA, Chrysler’s minority shareholder, have failed to reach a consensus regarding a price for Chrysler’s stake, but Marchionne said that Fiat might reach a deal with VEBA to avoid the prospect of an initial public offering (IPO) for the trust’s share.
“It’s highly unlikely that, forced with a real market test (of an IPO), that Fiat and VEBA will disagree on (Chrysler’s) value,” said Marchionne at a press conference at the Geneva car show.
by Ana Cezara Savin
) - Wednesday, March 13th, 2013 - filed under Chrysler
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