account
search
search

Chrysler will not launch as public firm this year

  |   Nov. 25, 2013 at 1:05 PM
MILAN, Italy, Nov. 25 (UPI) -- Italian auto company Fiat said Monday it would not launch Chrysler Group as a public company until the first quarter of 2014.

"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.

"No assurance can be given as to whether or when an offering will be launched as any launch will be subject to market conditions and other relevant considerations," Fiat said.

It had been expected that Fiat would announce a price range for Chrysler this week, The Wall Street Journal reported.

Fiat owns 58.5 percent of Chrysler while a healthcare trust for the United Auto Workers owns 41.5 percent.

Fiat, which took over the company when it emerged from bankruptcy in 2009 has been attempting to buy out the trust to make Chrysler and Fiat one company but the two sides have not been able to agree on price, the Journal said.

An initial public offering, however, can help establish a price, as it can establish a value for the company based on public demand.

Currently, analysts estimate Chrysler is worth $10 billion to $11 billion.

Related UPI Stories
© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
x
Feedback