Chrysler Forced into Filing for Initial Public Offering by Second-Largest Shareholder

Eagle Eye Opener

Chrysler Forced into Filing for Initial Public Offering by Second-Largest Shareholder (Reuters)

Chrysler Group LLC was forced into taking the first step toward an initial public offering (IPO) – which may never take place — by its second-largest shareholder, the United Autoworkers trust. The trust is seeking to exchange its shares in Chrysler for cash to fund medical benefits for blue-collar retirees. Analysts speculate the filing could turn out to be a negotiating strategy by the trust and that the IPO would never even hit the market. Instead, current shareholders would simply see their price per share appreciate and then have the option of taking those paper gains to the bank in the future. The UAW trust is able to force the IPO filing under the rights it received through Chrysler’s 2009 government-financed bankruptcy. The intent seems to be to boost pressure on Sergio Marchionne, chief executive of both automakers, to reach a deal with the trust on a sweetened purchase price of the trust’s stake in Chrysler. Chrysler’s largest shareholder, Fiat, owns approximately 58.5 percent but wants to acquire a 100 percent stake in Chrysler down the road. The trust is trying to speed up that timing and boost its ultimate payout.

Current Financial News
Eagle Eye Opener

share on:

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor