Filed under: Government/Legal
There will not be a Chrysler IPO
in 2013. Fiat
, according to a report from Forbes
, has announced that it will not be able to make the American brand's initial public offering before the end of the year, saying that the short, five-week window that makes up the rest of 2013 is "not practicable."
Not surprisingly, the issue with the Chrysler IPO
is the same as it's always been - a disagreement
between parent company Fiat, which owns 58.5 percent of the Chrysler Group and a UAW
healthcare trust, which owns 41.5 percent. Fiat wants to buy out the UAW VEBA healthcare trust
, which is responsible for shouldering retiree healthcare costs, but the two sides are hung up on an actual price tag for the remaining two-fifths of the company.
The original idea saw an IPO as a way of setting a fair market price
for the remaining shares, although it's not entirely clear what broke down and led to a delay of the IPO plan. As Forbes
points out, by waiting until 2014, Chrysler could be risking a cool-off in the IPO market, which could mean less money in its pocket when the automaker finally goes public.Chrysler stays IPO until 2014
originally appeared on Autoblog
on Mon, 25 Nov 2013 14:00:00 EST. Please see our terms for use of feeds
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