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Trust Hires Deutsche Bank to Help with Chrysler Share Sale
The United Auto Workers union healthcare trust that owns 41.5% of Chrysler Group LLC has retained Deutsche Bank to offer counsel about selling its stake in the company, according to Reuters, which cites unnamed sources.
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The United Auto Workers union healthcare trust that owns 41.5% of Chrysler Group LLC has retained Deutsche Bank to offer counsel about selling its stake in the company, according to Reuters, which cites unnamed sources.
The trust's options are to sell its shares to Fiat SpA, which already owns 58.5% of the company, or pursue the initial public offering it forced Chrysler to file for earlier this week.
Fiat is eager to buy Chrysler and fully integrate the two companies, thus giving it access to the American company's growing cash supply. But it has offered roughly $1 billion less than the trust seeks in a sale. An IPO might establish a higher share price and eventually a richer payout for the trust but not necessarily.
Reuter's sources say Deutsche Bank will help the trust, which is under little pressure to sell its holding, analyze those options. Analysts predict the two sides will come to a sales agreement that avoids a public offering.
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