Marchionne: Chrysler IPO Would Delay Merger with Fiat

An initial public offering by the retiree healthcare trust that owns 41.5% of Chrysler Group LLC would delay the company's planned merger with Fiat SpA, says Sergio Marchionne, the CEO of both companies.

Reuters reported last week that the trust might sell some of its Chrysler stake in an IPO by year-end.

Marchionne would prefer to buy the trust's stake in Chrysler outright. But the two sides are locked in a legal battle over the value of those shares.

The terms of Chrysler's bankruptcy agreement cap that value at more than $5 billion, according to Reuters, which notes that the trust's managers could face a legal challenge if they settle for anything less. Fiat has offered to buy the shares at the current market price, which would be roughly half the cap value.