Chrysler prepares for IPO

2013-09-23T16:36:00Z 2013-09-23T16:47:09Z Chrysler prepares for IPOThe Associated Press The Associated Press
September 23, 2013 4:36 pm  • 

DETROIT — Chrysler Group is reluctantly preparing for an initial public offering of some of its shares.

The automaker is proceeding with the IPO after it failed to reach an agreement on the value of the stock with the retiree trust that owns it.

Chrysler shares haven't been publicly traded since 1998, when the company merged with Daimler AG. The Auburn Hills, Mich.-based automaker is now majority owned by Italian automaker Fiat SpA.

The shares that will be sold are owned by a United Auto Workers-run trust that pays the health care costs for around 130,000 blue-collar Chrysler retirees. The trust currently owns a 41.5 percent stake in Chrysler, and will get all of the proceeds from the sale if it goes forward.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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