Chrysler Group CEO Sergio Marchionne has been talking about an IPO for quite sometime now, and it appears as if it will happen in the fourth quarter of this year, with Goldman Sachs serving as one of the advisors.
“Goldman Sachs have been advising Fiat S.p.A in its spin-off (of its truck unit) and now is advising Chrysler,” Marchionne said in an interview with Automotive News.
Marchionne also mentioned that Sachs is helping in the restructuring of Chrysler’s debt along with the IPO work, and says that they are ‘incredibly effective’ and ‘too big to ignore’.
A draft of the IPO prospectus is expected by the end of the first quarter.
Marchionne also announced that Fiat had raised ownership in Chrysler to 25% from 20% under terms of the deal initially negotiated with the US treasury as part of Chrysler’s bailout.
– By: Stephen Calogera
Source: Automotive News