Fiat chief executive Sergio Marchionne has said it was likely the carmaker would agree with Chrysler’s minority shareholder VEBA on a price for Fiat to buy VEBA’s 41.5% stake in Chrysler.
Fiat owns the remaining stake, and wants to own the entirety of the US automaker.
The two sides have failed to agree on price so far, Reuters noted. However, Marchionne said in Geneva that faced with the prospect of an initial public offering (IPO) for part of its stake – which would typically be priced at a discount to attract investors – VEBA was likely reach a deal with Fiat.
“It’s highly unlikely that, forced with a real market test (of an IPO), that Fiat and VEBA will disagree on (Chrysler’s) value,” he said during a press conference.
VEBA, a healthcare trust affiliated with the United Autoworkers’ Union, has the right to list part of its Chrysler stake on the New York Stock Exchange in a public offering, the news agency said.