According to anonymous sources the UAW union trust has tapped Deutsche Bank to get advice on how to sell its 41.5% stake in Chrysler.
As heated talks with Fiat are intensifying, VEBA has turned to the advice of Deutsche Bank to find the best way to sell its stake in Chrysler. VEBA takes into consideration the benefits of selling the stake gradually through an IPO offering or the outright sale to Fiat.
Fiat owns 58.5% of Chrysler and the two automakers’ CEO Sergio Marchionne plans to merge the two companies and create the seventh largest auto group in the world. Fiat is willing to offer $3 billion for VEBA’s stake but the trust wants more than $5 billion.
The feud intensified on Monday, September 23rd, when VEBA forced Chrysler to file the papers for the IPO, a right the trust has under the terms of the US automaker’s bankruptcy restructuring in 2009. After this move Marchionne said he is reconsidering the alliance with Chrysler.
If VEBA turned to the Deutsche Bank for advice regarding this deal, Fiat has hired Lazard Vice Chairman Ron Bloom, who also helped Chrysler in the 2009 bailout, to solve the impasse with VEBA. If the Fiat buyout will not materialize, Chrysler’s IPO will be lead by JPMorgan Chase & Co.