Chrysler Group LLC on Monday filed paperwork for an initial public offering offering of up to $100-million (U.S.), an action that could slow majority owner Fiat’s plans to take full ownership of the U.S. auto maker.
The offering will be underwritten by JPMorgan Chase & Co., the company said in a securities filing posted on Monday, more than four years after the third-largest U.S. auto maker emerged from a government-sponsored bankruptcy under Fiat management.Chrysler’s minority shareholder, the United Auto Workers retiree health care trust fund, decided in January to sell part of its 41.5-per-cent stake in the company in an IPO.
Sergio Marchionne, chief executive officer of both Chrysler and Fiat, said in mid-September that the IPO is likely to take place in the first quarter of 2014.
Mr. Marchionne and the UAW trust, a voluntary employee beneficiary association, or VEBA, have been at odds over the value of Chrysler. Their inability to agree on a price for the VEBA stake led to Monday’s IPO filing.