US car manufacturer Chrysler would be filing its initial public offering documents this week. Chief Executive Officer Sergio Marchionne told the Financial Times that the groundwork had been done. "All the work, all the preparation, drafts has gone through ... we should be ready to file within the third week of this month," he said.
The FT report said the IPO could happen within the year. In the meantime, Marchionne said the company would now be determining the value of the carmaker. He said, "(We) have been very clear that they are not long-term holders of the assets. They want to monetize so we need to find a way that ... does not create what I consider to be exceptionally high or abnormal expectations of value."
The trust that Marchionne referred to was the US VEBA Healthcare Trust affiliated with the United Auto Workers. The CEO said no agreement had yet been reached with the VEBA regarding Fiat's intention to buy the 41.5 stake held by the trust. If both parties could not agree on a price, the trust would be selling part of its holdings in the IPO. It would divest the remainder of its holdings in time. Fiat is parent firm of Chrysler.
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