Chrysler Seems Hesitant about IPO — UAW, Board & Banks Mull Price

The Wall Street Journal

Chrysler Seems Hes­i­tant to Come Out with IPO—Dealer’s Con­cerned?

AIN Edi­to­r­i­al Posi­tion­ing:

The whole prob­lem that is caus­ing the delay of the IPO is appar­ent­ly the uncer­tain­ty about what the Ini­tial Pub­lic Offer­ing price ought to be. Plus, appar­ent­ly the Board and Mar­chionne are work­ing on bring­ing the UAW on board and buy­ing out the remain­der of the stock.

So— then there is the issue of the con­ver­sion of Chrysler from a lim­it­ed lia­bil­i­ty com­pa­ny to a full blown cor­po­ra­tion may be mud­dy­ing the IPO waters with the IRS giv­ing Chrysler mixed sig­nals. Fur­ther­more, the Unit­ed Auto Work­ers Trust that owns 41.% of the com­pa­ny has to be involved in the final pric­ing of the IPO Stock Sales.

Worse yet is that Mar­chionne is appar­ent­ly some­how opposed to the whole idea of the IPO because he and Fiat think that the stock sale will affect the deal with the Unit­ed Auto Trust group and the price that Fiat has to pay for Chrysler.

Chrysler hopes to gain as much as $2B from the IPO. That would make the val­ue of Chrysler some­where between $9B to $13B.

Deal­ers with Chrysler stock should do well, and may have the inside track to buy more stock as the even­tu­al IPO comes down.




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