Fiat Technically Can Buyout IPO Shares in Chrysler Owned by VEBA
According to Fiat SpA CEO Sergio Marchionne, the automaker would purchase the rest of Chrysler Group LLC just before the stake held by the health care trust fund of the United Auto Workers would be publicly listed.
He said, "It's technically possible," as to the buyout to occur before the completion of the IPO. Marchionne is concurrent CEO of Chrysler and he made these remarks to reportes at the Council for the United States and Italy held in Venice. He added that it is one of the several alternatives available to the carmaker.
Discussions are now ongoing between Marchionne and the UAW trust as to the acquisition of the 41.5% stake in the largest car manufacturer in Italy. The UAW trust had requested the conduct of an IPO to be done at the soonest possible time, even by the fourth quarter of the year. He added that the discussions are 'fundamentally' about the price of the Fiat shares owned by VEBA, the UAW healthcare trust fund.
Should the Fiat and Chrysler mere, it would complete Marchionne's goal of developing a global automaker that would compete with General Motors Co and Volkswagen AG. He added that the holdings company of the Agnelli Family, Exor SpA is amenable to a capital fundraisibg after the Chrysler acquistion.