Arab Today, arab today chrysler files for initial public stock offering
Last Updated : GMT 09:31:43
Arab Today, arab today
Arab Today, arab today

Chrysler files for initial public stock offering

Arab Today, arab today

Arab Today, arab today Chrysler files for initial public stock offering

New York - AFP

US automaker Chrysler filed papers Monday for an initial public stock offering after Italian parent Fiat failed to reach a deal to purchase a workers retirement fund\'s large stake. Sergio Marchionne, who leads both Chrysler and Fiat, had repeatedly said he hoped to avoid an IPO as he sought full ownership of the third largest US automaker. But the UAW Retiree Medical Benefits Trust -- known as the VEBA Trust -- has demanded a stock offering in hopes of getting a better payout. The papers filed Monday may not necessarily result in an actual stock offering if the two sides are able to reach a deal before the shares are sold. If they do, it will be the first time Chrysler shares were traded since its failed 1998 merger with Germany\'s Daimler Benz. Chrysler said in a statement that the number of shares to be offered, and the price range for them, had yet to be determined. \"The VEBA Trust will receive all of the net proceeds from this offering,\" Chrysler said. JP Morgan Securities was chosen as the lead book-running manager of the offering, and no time was set for the offer. \"The Chrysler IPO is a textbook example of the difficulties that can occur when debt is converted into an ownership stake, as it was during Chrysler\'s bankruptcy,\" said automotive analyst Jack Nerad of Kelly Blue Book. \"The trust is looking for a windfall based on the current expected value of a public-traded Chrysler, but the move may actually harm Chrysler\'s future and by extension harm current Chrysler workers.\" An IPO could complicate Marchionne\'s efforts to fully consolidate Chrysler within Fiat\'s global operations, Nerad noted. Fiat currently holds a 58.5 percent ownership stake in Chrysler, while the VEBA trust holds the remaining 41.5 percent. However, under the terms of a deal reached as part of a 2009 government-funded bankruptcy filing, the VEBA trust is obligated to sell a large portion of that stake directly to Fiat. The potential IPO comes as Chrysler\'s sales are booming after decades of turbulence and decline. Chrysler\'s first big government bailout was in 1979 when legendary chief Lee Iacocca secured a loan guarantee. Like fellow Detroit Three automakers General Motors and Ford, Chrysler shed tens of thousands of workers and scores of US factories in the 1980s and 1990s due to automation, a loss of market share to foreign competitors and the shift to cheaper production in Mexico. The 1998 merger with Daimler was a colossal failure as the German automaker poured billions into its US partner before finally selling Chrysler to the private equity group Cerberus in 2007. Cerberus did not have much chance of success once the 2008 financial crisis hit and auto sales collapsed to levels not seen in decades. Chrysler joined General Motors in seeking billions in aid from the US government and then restructuring under bankruptcy protection in 2009. Fiat was able to win a 20 percent stake in Chrysler in exchange for sharing its technology and putting Marchionne at the helm. Marchionne led a drastic revamp of Chrysler\'s product offerings and management structure that has fueled to 41 consecutive months of sales gains in the United States. Chrysler\'s profits rose 16 percent to $507 million in the second quarter, with global vehicle sales up 10 percent at 643,000. Those profits have been keeping Fiat in the black amidst a deep downturn in Europe and Marchionne has been steadily expanding Fiat\'s stake. His goal is to create a global player with the capital and volume to compete with the likes of Toyota and General Motors.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chrysler files for initial public stock offering Arab Today, arab today chrysler files for initial public stock offering

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 20:48 2017 Wednesday ,22 February

Dividend announcements drive Muscat bourse

GMT 16:56 2017 Wednesday ,22 February

Global gold prices drop

GMT 16:01 2017 Wednesday ,22 February

Tadawul edges down 0.2%

GMT 13:22 2017 Wednesday ,22 February

Canadian stock market closes at record high

GMT 11:50 2017 Wednesday ,22 February

Most Asia markets up as Hong Kong rebounds

GMT 20:52 2017 Tuesday ,21 February

Asia stocks consolidate recent gains; China shines

GMT 10:37 2017 Tuesday ,21 February

Most Asia markets up as rally presses ahead
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday