Chrysler has filed papers with the US authorities for an Initial Public Offering (IPO), a move seen as part of the ongoing dispute between majority owner Fiat and the healthcare trust that owns 41.5% of the company.
Some analysts expect that the IPO may not happen and that the two sides could agree on a valuation for the stake ahead of it.
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Fiat and Chrysler boss Sergio Marchionne wants to avoid an IPO as it would complicate his efforts to acquire the rest of Chrysler and complete the merger of the two.
“Completion of this offering will prevent or delay Fiat from meeting this objective,” Chrysler said in its filing.
“Fiat has informed us that it is reconsidering the benefits and costs of further expanding its relationship with us and the terms on which Fiat would continue the sharing of technology, vehicle architectures and platforms, distribution networks, production facilities and engineering and management resources.”
The shares being sold in the proposed public offering come from the stake of a trust established to cover medical benefits for retired workers that now owns 41.5% of the company.
Chrysler said that the proceeds from a sale would go to the United Auto Workers health care trust – which owns the 41.5% stake.
Fiat wants to acquire the remaining stake in Chrysler to consolidate its alliance operations.
