Chrysler has had a lot of owners over the past few years alone, from Daimler to Cerberus to Fiat and the federal government. But it could be poised to gain some more before long. Like, a lot more.

The automaker has just announced that it has filed with the US Securities and Exchange Commission to issue an Initial Public Offering of common stocks. Chrysler hasn't revealed how many shares will be offered and at what price, however the shares in question will not come out of Fiat's approximate 60 minority stock held by the UAW's VEBA retiree healthcare trust. Reports suggest that the IPO, which is being handled by JP Morgan, could encompass approximately 16% of Chrysler stock, initially valued at approximately $100 million.

Lest you think this is all part of Sergio Marchionne's grand plan to consolidate Chrysler and Fiat, the two auto groups over which he presides, think again. The filing, which still needs to be approved by the SEC, comes at the insistence of the UAW. Negotiations between Marchionne's management team and the union over Fiat's acquisition of the VEBA shares have stalled. If they manage to come to an agreement, however, the IPO would likely be taken off the table. So don't go calling your broker just yet, but you can analyze the official announcement below.
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Chrysler Group LLC Files Registration Statement for Proposed Initial Public Offering

September 23, 2013 , Auburn Hills, Mich. - Chrysler Group LLC announced today that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the "SEC") relating to a proposed initial public offering of common shares. The number of shares to be offered and the price range for the offering have not yet been determined. The common shares to be sold in this offering are proposed to be sold by the UAW Retiree Medical Benefits Trust (the "VEBA Trust"), which has exercised demand registration rights under a shareholders' agreement with Chrysler Group LLC. The VEBA Trust will receive all of the net proceeds from this offering.

J.P. Morgan Securities LLC will be the lead book-running manager of the offering. This offering will be made only by means of a prospectus. A copy of the preliminary prospectus, when available, may be obtained by contacting J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by calling (866) 803-9204.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. Copies of the registration statement can be accessed through the SEC's website. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.


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    • 1 Second Ago
  • 8 Comments
      itguy08
      • 1 Year Ago
      Sweet. Now lets hope that in 10-20 years when Chrysler goes belly up for the 3rd time they will finally disappear. Should have been dead when Iacocca was begging in the 80's and again in 2008.
      marv.shocker
      • 1 Year Ago
      They should file for an IPOS--International Piece of Sh*t
      RGT881
      • 1 Year Ago
      So here's what I see - The economy is still weak - Bernanke proceeds with full QE to infinity and beyond. Although QE/ZIRP have done zilch to strengthen the economy. - Prices of all sorts of assets (bonds notwithstanding) get artificially inflated and go up and are way overvalued looking at any time of financial ratio metric. - UAW sees an opportunity to make an extra buck. Can't say I blame them. Thanks Mr. Bernanke job well done. There was a cartoon on Zero Hedge showing a Wall Street type endlessly thanking the poor man on the street, and it's obvious why.
      Arthur Dunning III
      • 1 Year Ago
      I can only hope that Marchionne and the UAW can come to an agreement. I don't care to see him stymied in his plans for Chrysler, since he was the first Chrysler CEO that had ideas on how to fix Chrysler's many problems. His implementation of those ideas is the reason that Chrysler enjoys the success that it has now, even though he didn't tackle the problems alone.
      engr00
      • 1 Year Ago
      UAW isnt smart enough for this, this is Serg looking to see what the real value of the Chrysler Company is. This way Fiat can decline the UAWs inflated asking price and just simply buy it at the IPO suggested price.