Marchionne Now Claims Chrysler IPO Could Occur This Year

Chrysler-Fiat CEO Sergio Marchionne, who earlier this month expressed doubts about an initial public offering for Chrysler Group LLC, now tells reporters Chrysler will push to launch the IPO before the end of this year.

Last month the union healthcare trust that owns 41.5% of Chrysler forced the company to file registration papers for an IPO to establish a price for its shares.

Fiat, Chrysler's 58.5% owner, would prefer to buy the trust's stake directly. But a court ruling to decide on a price is at least a year away.

USB AG has estimated the value of the trust's Chrysler holding at $5.6 billion (€4.1 billion). Fiat reportedly has offered roughly $3 billion (€2.2 billion). Analysts continue to predict that the two parties will avoid the IPO, because the full merged company Marchionne envisions is likely to be financially stronger.