Chrysler won't go ahead with IPO in 2013: Fiat
By Agnieszka Flak
MILAN (Reuters) - The planned stock market listing of Fiat's FIA.MI U.S. unit Chrysler will not take place this year, the Italian carmaker said on Monday, prolonging the uncertainty over its chances of buying out the rest of the company.
The initial public offering was expected to help settle a long-running spat over the U.S. automaker's value between Fiat and a retiree healthcare trust tied to the United Auto Workers union, which owns 41.5 percent of Chrysler.
The delay represented yet another obstacle to Chief Executive Officer Sergio Marchionne's plan for the Fiat-Chrysler alliance, one of the centerpieces of the Obama administration's 2009 restructuring of the U.S. auto industry.
Chrysler's board of directors "determined that it will not be practicable for Chrysler Group to launch and complete an initial public offering prior to the end of 2013," Fiat said in a statement.
The company said it expected Chrysler to work toward an IPO in the first quarter of 2014, but added it could not say if and when such an offer would happen as it would depend on "market conditions and other relevant considerations."
In a regulatory filing late Monday, Chrysler said it intended to list its shares on the New York Stock Exchange under the symbol "CGC." The company also added five other underwriters, including Bank of America Merrill Lynch (BAC.N: Quote), which with JPMorgan Chase & Co (JPM.N: Quote), will lead the IPO.
Marchionne, who has run both Chrysler and Fiat since 2009, was looking to kick off its IPO road show in early December, but that was pushed back after a U.S. tax issue emerged, two sources said. Continued...