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Chrysler expected to file for IPO

Staff writer |
Chrysler is expected to file initial public stock offering (IPO) documents in the next two weeks despite Fiat's preference to buy 100% of Chrysler's shares, the two companies' CEO Sergio Marchionne said.

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The filing with the U.S. Securities and Exchange Commission will come by the end of this month, Mr. Marchionne said. It would resolve a protracted legal fight between Fiat, which owns 58.5% of Chrysler, and the UAW's Retiree Medical Benefits Trust, which owns the other 41.5%.

The Italian automaker has offered to buy another 9.9%, but the trust has rejected Fiat's offered price. Fiat then sued the trust in Delaware Chancery Court, but a judge has declined to establish a price. The matter should be settled through a trial, but that might not happen until 2015.

There is a gap of about $200 million between what Fiat offered for the first 3.3% increment and what the UAW trust argues it is worth.


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