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Marchionne: No Progress on Chrysler Stock Deal
Chrysler-Fiat CEO Sergio Marchionne says Fiat's efforts to buy the 41.5% of Chrysler Group it doesn't already own remain stalled. "We are still having chats, but I don't have a deal," he tells reporters in Italy.
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Chrysler-Fiat CEO Sergio Marchionne says Fiat's efforts to buy the 41.5% of Chrysler Group it doesn't already own remain stalled.
"We are still having chats, but I don't have a deal," he tells reporters in Italy.
The outstanding stake is held by a United Auto Workers union retiree healthcare trust. A sale has been bogged down for months over the value of the holding.
Both sides agree that an initial public offering would quickly set a value for the stake. Chrysler filed for an IPO on Sept. 23 at the trust's request. But the company would prefer to negotiate a direct purchase. The trust has hired Deutsche Bank to help it decide what to do.
Marchionne says an IPO is still technically possible by year-end, but he considers 2014 a more likely target.
Fiat is eager to acquire all of Chrysler and fully merge the two companies. Doing so would give the company, which is struggling in Europe, access to Chrysler's $12 billion in cash.