/ 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!

Lauda pressures Lowe after Hamilton fire
Lauda pressures Lowe after Hamilton fireJul.26 (GMM/Inautonews.com) Niki Lauda was putting the pressure on team boss Paddy Lowe late on Saturday, as technical trouble ...
Hamilton’s hopes up in flames in Hungary
Hamilton’s hopes up in flames in HungaryJul.26 (GMM/Inautonews.com) Lewis Hamilton's championship hopes went up in Mercedes-flavoured fire on Saturday. Far from ...
Even Renault looking forward to summer shutdown
Even Renault looking forward to summer shutdownJul.26 (GMM/Inautonews.com) Even F1's engine suppliers will take a 'summer break' in August. Eleven races into the season, and ...
Zetsche wants Ecclestone to give up F1 marketing
Zetsche wants Ecclestone to give up F1 marketingJul.26 (GMM/Inautonews.com) Dieter Zetsche, the chairman of Mercedes parent Daimler, has pointed the finger at Bernie Ecclestone ...
F1 teams to ‘follow’ Ecclestone to Russia
F1 teams to ‘follow’ Ecclestone to RussiaJul.26 (GMM/Inautonews.com) F1 team bosses have swerved around the political crisis in the wake of the MH17 air disaster. The ...
Sacked staff to sue Caterham – report
Sacked staff to sue Caterham – reportJul.26 (GMM/Inautonews.com) Caterham is facing legal action after sacking 40 members of staff earlier this month. As team ...
Hamilton slams Pirelli tyres in Hungary
Hamilton slams Pirelli tyres in HungaryJul.26 (GMM/Inautonews.com) Lewis Hamilton was heavily critical of Pirelli's tyres after practice for the Hungarian grand ...
‘Silly season’ strikes F1 throughout 2014 grid
‘Silly season’ strikes F1 throughout 2014 gridJul.26 (GMM/Inautonews.com) The unofficial 'silly season' has officially hit F1, as talk of a move to Mercedes for world ...
Mercedes sticking with Brembo despite failure
Mercedes sticking with Brembo despite failureJul.25 (GMM/Inautonews.com) Mercedes will continue to work with brake supplier Brembo, despite Lewis Hamilton's disc failure in ...
Lauda rubbishes Vettel-to-Mercedes rumour
Lauda rubbishes Vettel-to-Mercedes rumourJul.25 (GMM/Inautonews.com) With the summer sun baking in Budapest, 'silly season' has well and truly arrived in the F1 ...
PREVIEW – Hungarian GP 2014
PREVIEW – Hungarian GP 2014“The circuit is a decent measure of a car’s mechanical grip, due to the need of having good traction out of many slow ...
Indian showroom owner prepares a manlier Dacia Duster
Indian showroom owner prepares a manlier Dacia DusterA hotter version of the Dacia Duster has seen daylight first in an Indian car showroom and it managed to attract quite a lot of ...
[VIDEO] Subaru WRX STI gets Gymkhana style promo
[VIDEO] Subaru WRX STI gets Gymkhana style promoA new promotional video for the Subaru WRX STI is showing the performance sedan from a Gymkhana “point of view”. All petrol ...
2015 Hyundai Tucson introduced
2015 Hyundai Tucson introducedHyundai dealerships across the United States are getting ready to receive the 2015 Tucson, as the model in question has been ...
First Ferrari LaFerrari spotted in China
First Ferrari LaFerrari spotted in ChinaThe first unit of the impressive Ferrari LaFerrari in China has been recently spotted on the road where it “made” a new ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

dacia duster tuning india 1
2015-hyundai-tucson 1
Comic-Con-Toys
tesla model s crash china 2014 1
Ford F-35 Lightning II Edition Mustang GT 1
mercedes-amg 4.0l v8 twin turbo 1
Honda NSX 01-2
ferrari f430 spider crash geneva kid 1
2015 mercedes-benz c-class cabrio interior 2
nissan note nismo 1
2015 ford falcon xr6 xr8 1
Mercedes-Benz-AMG-GT-1

More automotive from inautonews
“The circuit is a decent measure of a car’s mechanical grip, due to the need of having good traction out of many slow corners. In terms of aerodynamics, the problem for the teams is the same as that faced in Monaco: namely to maximize performance at the high-down force of the spectrum” Pat ...
read more
Inautonews Editors Section
PREVIEW – Hungarian GP 2014
PREVIEW – Hungarian GP 2014“The circuit is a decent measure of a car’s mechanical grip, due to the need of having good traction out of many slow corners. In terms of ...
Review – German GP 2014
Review – German GP 2014Taking Rosberg’s easy win out of the picture, the German GP was truly spectacular, full of wheel-to-wheel racing, some of the overtakes backfiring ...
Britain and Germany go to war
Britain and Germany go to war1995, the German Grand Prix at the old Hockenheimring. Damon Hill leads at the end of lap one ahead of Schumacher but loses the car at the first ...

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 General Motors – 6 new recalls announcedGeneral Motors is continuing to announce new recalls with six separate campaigns which are covering ... Recall roundup: Mercedes-Benz SLK and SL for Takata airbagsThe German based automaker Mercedes-Benz has recently issued a recall for the SLK and for the SL ...
Safety Section