Fiat said that its relationship with Chrysler will change if VEBA manages to sell a minority stake in the US automaker through the IPO.
“If Chrysler goes ahead with the IPO, there is no doubt” that it alters the situation with Fiat, John Elkann, the Turin, Italy-based company’s chairman, said today in Milan when asked by Bloomberg News if the listing would put the alliance at risk. “Having two companies is very different than having one.”
After Chrysler filed the documents for the IPO on Monday, September 23rd, Fiat said that it will reconsider its relations with the US automaker and plans for the merger. By forcing Chrysler into an IPO, VEBA has jeopardized the future of Fiat-Chrysler relations .
The United Auto Workers retiree trust owns 41.5% of the US automaker and since Fiat will offer at least $2 billion less than it had asked for the stake, it hopes investors will not hesitate to pay premium for the shares.
It’s been four years since Marchionne has started to work on merging the two automakers and created a global automaker to rival GM, Toyota and VW. If Fiat will manage to acquire Chrysler it will have access to the automaker’s $12 billion in cash, which the Italian car maker would use for its turnaround in Europe.
by Ana Cezara Savin
) - Thursday, September 26th, 2013 - filed under Chrysler
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