Chrysler adds four underwriters as it eyes December IPO: sources

Wed Nov 20, 2013 5:29pm EST
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By Soyoung Kim and Olivia Oran

NEW YORK (Reuters) - Chrysler Group LLC has added four banks to help underwrite its proposed initial public offering, as the U.S. automaker looks to launch the deal as soon as early December, according to people familiar with the matter.

Barclays Plc (BARC.L: Quote), Goldman Sachs Group (GS.N: Quote), Morgan Stanley (MS.N: Quote) and UBS AG UBSN.VX have been appointed as bookrunners in the offering, which is being led by JPMorgan Chase & Co (JPM.N: Quote) and Bank of America Merrill Lynch (BAC.N: Quote), the people said on Wednesday.

The IPO could price in December, the people said, declining to be identified because the information is private.

Chrysler declined to comment. Representatives for the banks either declined to comment or did not respond to requests for comment.

Chrysler, which is majority owned by Italian automaker Fiat SpA FIA.MI, filed paperwork for an IPO in late September after Fiat was unable to reach a buyout deal with Chrysler's second-largest shareholder, a retiree healthcare trust affiliated with the United Auto Workers union.

While the IPO could happen within weeks, analysts have said that the healthcare trust and Fiat will come to terms on a buyout before the first shares are sold.

Sergio Marchionne, chief executive of both Fiat and Chrysler, has said he wants to merge the two companies to create the world's seventh-largest carmaker.

Chrysler has come a long way from being nearly dead in 2009 when Marchionne, along with the U.S. Treasury and the UAW, agreed to a restructuring deal that left Fiat with 20 percent ownership.   Continued...

A sign is shown at the Massey-Yardley Chrysler. Dodge, Jeep and Ram automobile dealership in Plantation, Florida October 8, 2013. REUTERS/Joe Skipper