“All the work, all the preparation, the drafts have gone through,” explained Marchionne in an interview with The Financial Times. “We should be ready to file within the third week of this month.”
The IPO is a last resort in the negotiations between Fiat, which currently holds a 58.5-percent stake in Chrysler, and VEBA, the UAW trust that owns the rest of the automaker. Marchionne has been trying to unify the company for four years but the two parties have not managed to agree on a fair price. Fiat is willing to pay up to $4.2 billion for the rest of Chrysler while VEBA maintains its shares are worth a lofty $10.3 billion. Generally outspoken, Marchionne recently joked VEBA should buy a lottery ticket if it wants to get over $5 billion for its shares.
Listing of Chrysler on the stock market will enable Fiat and VEBA to determine the true value of Chrysler, but the IPO presents risks for both parties. If shares soar, Fiat will end up spending considerably more than planned; If shares drop, VEBA stands to lose a lot of money.
Marchionne indicated Chrysler could return to the stock market before the end of the year but he prefers to wait until after the holiday season. Analysts believe the automaker will be listed in New York in the first quarter of 2014.
Photo by Ronan Glon.
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