We’re going to get a Chrysler IPO, it seems … just not until the first quarter of 2014.
According to a report in the Wall Street Journal, the Chrysler IPO should raise anywhere from $1.5 billion to $2 billion and fetch a market value of $10 billion to $11 billion, which probably will make it one of the largest transactions of 2014. The lead underwriter for the Chrysler IPO is JPMorgan (JPM), but the company has yet to select an exchange to list on.
While American auto aficionados/investors might be excited about the prospect of a Chrysler IPO, majority owner Fiat (FIATY) isn’t as stoked. CEO Sergio Marchionne has been engaged in tough negotiations with a United Auto Workers-affiliated medical trust to buy its 41.5% equity stake, which it received this because of the federal bailout in 2009. However, the sides haven’t been able to agree on a valuation. Read