/ Chrysler, Fiat, News / VEBA Pushes Chrysler Take Step Towards IPO

VEBA Pushes Chrysler Take Step Towards IPO

Linked In Share
VEBA Pushes Chrysler Take Step Towards IPO

Chrysler’s minority owner, VEBA, demanded the automaker to register shares with US regulators, a first step for the car maker to become a public company.

Wednesday, January 9th, VEBA, a United Auto Workers union retiree healthcare trust, demanded that Chrysler should register 16.6% of the automaker’s shares with the U.S. Securities and Exchange Commission. The 2009 agreement, which brought Chrysler out of bankruptcy, allows the minority owner to make such a demand.

Analysts believe that there will be no public offering, and that this is just a plan of the healthcare trust to force Fiat’s hand in valuing the US automaker’s shares, currently contested in a Delaware court. The 2009 bankruptcy agreement gives Fiat the right to buy a 3.3% stake in Chrysler every six months until the maximum of 16.6%.

“The IPO ain’t gonna happen,” said Richard Hilgert, an analyst at Morningstar. “VEBA wants to get a pricing on the 16.6 percent so that they can take it to court and say ‘this is the market price.’”

Currently Fiat owns 58.5% in Chrysler and VEBA the rest of 41.5%. Fiat and Chrysler’s CEO Sergio Marchionne previously declared that he plans to merge the two companies by 2015. Fiat values Chrysler’s shares at $4.2 billion, VEBA at $10.3 billion, while analyst Richard Hilgert values it at $13.6, in a report published in May.

“When we signed the damn thing in 2009 it was clear,” Marchionne said in October, referring to the pricing formula for the value of Chrysler shares. “Today, now that things have changed and we’re making some money” VEBA wants not to adhere to the formula, he said.

by Ana Cezara Savin (my Google+) - Thursday, January 10th, 2013 - filed under Chrysler, Fiat, News. Image credit: .
Linked In Share
Related Articles
Chrysler Fiat IPO veba


Discuss: VEBA Pushes Chrysler Take Step Towards IPO

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Marussia also won’t race in America – Ecclestone
Marussia also won’t race in America – EcclestoneOct.25 (GMM/Inautonews.com) Marussia will join fellow F1 straggler Caterham in not racing in Austin next weekend, Bernie ...
Lotus to keep Grosjean, test 2015 nose
Lotus to keep Grosjean, test 2015 noseOct.25 (GMM/Inautonews.com) Lotus has confirmed it will test a conventional nose solution ahead of next weekend's US grand ...
Caterham can miss Austin-Brazil double header
Caterham can miss Austin-Brazil double headerOct.25 (GMM/Inautonews.com) Caterham is allowed to sit out the next two grands prix while it fights for survival. As ...
Administrator becomes Caterham team boss
Administrator becomes Caterham team bossOct.24 (GMM/Inautonews.com) The Caterham saga took another bizarre twist on Friday as an administrator became the new team ...
[VIDEO] McLaren P1 MSO spotted on the Fiorano
[VIDEO] McLaren P1 MSO spotted on the FioranoA McLaren P1 customized by MSO has been recently spotted lapping Ferrari’s famous Fiorano track. If you though that vehicles ...
Ford Focus Electric gets price cut in the U.S.
Ford Focus Electric gets price cut in the U.S.The Ford Focus Electric has received a new price cut in the United States because of poor demand. While its main rival, the ...
Test Drive: Dacia Sandero Stepway 1.5 90 HP
Test Drive: Dacia Sandero Stepway 1.5 90 HPIf you live in Europe, you don’t need an introduction to Dacia anymore – this is the affordable Renault subsidiary that ...
[VIDEO] Mercedes-Benz GLC63 AMG prototype caught on the open road
[VIDEO] Mercedes-Benz GLC63 AMG prototype caught on the open roadA prototype version of the upcoming Mercedes-Benz GLC63 AMG has been recently caught on camera while it was being tested out on ...
[VIDEO] See the world’s fastest Toyota Supra in action
[VIDEO] See the world’s fastest Toyota Supra in actionThe world’s fastest Toyota Supra has been recently spotted in action on a drag strip where it managed to shatter a lot of speed ...
Mercedes-Benz S600 Pullmann spied
Mercedes-Benz S600 Pullmann spiedOur spy photographers have managed to capture the upcoming Mercedes-Benz S600 Pullmann on camera while it was being tested out on ...
BMW i8 costs more than $200,000 on eBay
BMW i8 costs more than $200,000 on eBayThe price of a BMW i8 stands at a whopping 200,000 USD on eBay as we recently found out doing a quick search. The BMW i8 is one ...
Mercedes-Benz GLA45 AMG announced for Australia
Mercedes-Benz GLA45 AMG announced for AustraliaMercedes-Benz will be launching the GLA45 AMG performance crossover in Australia where the model in question will be priced from ...
Recall roundup: 850,000 units of the Audi A4
Recall roundup: 850,000 units of the Audi A4The German based automaker Audi has recently announced a recall for a massive 850,000 units of the A4, because of some problems ...
Ferrari LaFerrari for sale
Ferrari LaFerrari for saleAnother unit of the impressive Ferrari LaFerrari is currently looking for a new owner who will have to pay no less than 2.6 ...
Ferrari F50 gets crashed in the UK
Ferrari F50 gets crashed in the UKA Ferrari F50 supercar has been recently involved in a heavy crash in the United Kingdom after its driver lost control of the ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Dacia_Sandero_Stepway_DSC7910
Spy-Shots of Cars
ferrari f50 crash uk 1
bmw x5 concept edrive paris 1
Porsche Macan Turbo TechArt tuning 1
2015 volkswagen jetta styling accessories 1
ATS Sport 490 Stradale 1
ferrari laferrari xx 1
Spy-Shots of Cars
Spy-Shots of Cars
Spy-Shots of Cars
mercedes-benz gla 45 amg tuning brabus 1

More automotive from inautonews
A McLaren P1 customized by MSO has been recently spotted lapping Ferrari’s famous Fiorano track. If you though that vehicles which aren’t produced in Maranello aren’t allowed on the Fiorano track, think again, because one of the main rivals of the LaFerrari, the McLaren P1, has been spotted ...
read more
Inautonews Editors Section
Test Drive: Dacia Sandero Stepway 1.5 90 HP
Test Drive: Dacia Sandero Stepway 1.5 90 HPIf you live in Europe, you don’t need an introduction to Dacia anymore – this is the affordable Renault subsidiary that rocked the auto industry ...
Test Drive: Mercedes-Benz A180 CDI AT
Test Drive: Mercedes-Benz A180 CDI AT The new generation of the A-Class has been around since 2012 and its overall design is quite drastic, considering its predecessor. Now, two years ...
Test Drive: Citroen C-Elysee 1.6 HDi Exclusive
Test Drive: Citroen C-Elysee 1.6 HDi Exclusive Citroen has introduced the second generation of the C-Elysee last year. The model is smaller than the C4 and it is based on the Peugeot 301, being ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: 850,000 units of the Audi A4The German based automaker Audi has recently announced a recall for a massive 850,000 units of the ... NHTSA tries and fails to keep drivers informed about Takata airbag debacleThe National Highway Traffic Safety Administration issued a public warning about the potential ...
Safety Section