FILE – In this Monday, July 29, 2013, file photo, a Chrysler 300 sits on the lot of Midstate Motors in Berlin, Vt. Chrysler Group said Monday, Sept. 23, 2013, it is preparing an initial public offering of some of its shares. Chrysler filed paperwork for the IPO with the federal government late Monday. (AP Photo/Toby Talbot, File)
DETROIT (AP) — Chrysler Group is reluctantly preparing for an initial public offering of some of its shares.
The automaker is proceeding with the IPO after it failed to reach an agreement on the value of the stock with the retiree trust that owns it.
Chrysler shares haven’t been publicly traded since 1998, when the company merged with Daimler AG. The Auburn Hills, Mich.-based automaker is now majority owned by Italian automaker Fiat SpA.
The shares that would be sold are owned by a United Auto Workers-run trust that pays the health care costs for around 130,000 blue-collar Chrysler retirees. The trust owns a 41.5 percent stake in Chrysler. It will get all of the proceeds from the IPO if it goes forward.
Sergio Marchionne, the CEO of both Fiat and Chrysler, has made it clear that he wants to buy up the UAW’s share and combine Fiat and Chrysler. But the two sides have been unable to agree on a price. The trust has set the value of the stake at $4.27 billion, Login to read more