Chrysler's step to file for an IPO last week was an effort to shake one of its majority owners into doing what they did not want to do before. The Italian automaker, Fiat, owns 58 percent of Chrysler, whereas the rest of it is held by United Auto Workers retiree benefits trust (VEBA). The CEO of both Chrysler and Fiat SpA (BIT:F) (OTCMKTS:FIATY), Sergio Marchionne, wants to consolidate Fiat and Chrysler into one big company. This is of course not possible if VEBA does not sell its stake in Chrysler, which it is demanding a much higher price for than Chrysler is willing to pay.
Setup a free account to get access to this article (no credit card required).Login required to continue reading.
Already a member? Log in here
