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Chrysler Files for an I.P.O.
Source: New York Times
SEPTEMBER 23, 2013, 5:23 PM
Chrysler Files for an I.P.O.
BY BILL VLASIC
DETROIT — Chrysler filed for a public stock offering on Monday, acting only under pressure from its second-largest shareholder, a trust set up to provide medical coverage for 115,000 retired autoworkers and their relatives.
Ordinarily, Chrysler’s plan would be cause to celebrate the automaker’s comeback from its government bailout and bankruptcy in 2009. But it is acting only after negotiations stalled between Fiat, which controls Chrysler, and the trust over the purchase of the trust’s minority stake in Chrysler.
The offering could be canceled if Fiat and the trust reach a deal.
The Detroit automakers have large financial responsibilities to their retirees. On Monday, General Motors said it would raise money in the bond market to buy preferred stock in the company owned by its retiree health care trust at a cost of $3.2 billion. Chrysler’s offering arises from an unusual conflict of interests, made possible by the remarkable turnaround at Chrysler since the federal government shepherded it through bankruptcy four years ago.
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Chrysler Files for an I.P.O.
BY BILL VLASIC
DETROIT — Chrysler filed for a public stock offering on Monday, acting only under pressure from its second-largest shareholder, a trust set up to provide medical coverage for 115,000 retired autoworkers and their relatives.
Ordinarily, Chrysler’s plan would be cause to celebrate the automaker’s comeback from its government bailout and bankruptcy in 2009. But it is acting only after negotiations stalled between Fiat, which controls Chrysler, and the trust over the purchase of the trust’s minority stake in Chrysler.
The offering could be canceled if Fiat and the trust reach a deal.
The Detroit automakers have large financial responsibilities to their retirees. On Monday, General Motors said it would raise money in the bond market to buy preferred stock in the company owned by its retiree health care trust at a cost of $3.2 billion. Chrysler’s offering arises from an unusual conflict of interests, made possible by the remarkable turnaround at Chrysler since the federal government shepherded it through bankruptcy four years ago.
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Read more: http://dealbook.nytimes.com/2013/09/23/chrysler-files-for-an-i-p-o/
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