Chrysler has invited banks to offer pitches scheduled for next month for IPO scenarios and results according to four individuals familiar with the decision. For its part, Fiat is discussing with minority shareholder VEBA for a full buyout.
The board of Chrysler would be interviewing banks in April for underwriting purposes in its IPO. According to the sources, the banks have been requested to draw up 'dual-track' sales pitches with the options of Chrysler share flotation of the shares not owned by Fiat or an agreed buyout of the VEBA stake buyout.
Currently, Fiat owns 58.5% while VEBA owns 41.5%. Chrysler Group spokesman, when inquired, said that there has been no confirmation of an April meeting with bankers for an IPO. Fiat for its part declined to comment.
It is the vision of Fiat CEO to merge the two automakers but said he is open to an IPO should VEBA and Fiat fail to make a deal work. Marchionne is the CEO of both Fiat and Chrysler.
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