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UAW Wants Chrysler to Go Public
An initial public offering for Chrysler Group LLC would be the best way for its minority shareholder, a union-run retiree healthcare fund, to obtain the greatest value for its shares, United Auto Workers President Bob King tells The Detroit News.
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An initial public offering for Chrysler Group LLC would be the best way for its minority shareholder, a union-run retiree healthcare fund, to obtain the greatest value for its shares, United Auto Workers President Bob King tells The Detroit News.
The trust (the UAW's Voluntary Employee Beneficiary Assn.) holds 41.5% of Chrysler. The VEBA is eager to divest its stake for the highest possible high price to help fund medical benefits for Chrysler's current and future union retirees.
The trust reported a $5 billion funding deficit at the end of 2011. Investment bank UBS estimates the VEBA's shares are worth about $3.7 billion.
The trust gained the right on Jan.1 to demand that Chrysler start the process of launching an IPO. The VEBA made the request earlier this month.
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