Chrysler IPO Delayed, Not Happening This Year
Chrysler has been looking to go public with an initial public offering as early as next month, but now it appears an IPO won't happen in 2013. According to a report in Automotive News Europe, Fiat—which holds a majority stake in Chrysler—said it would "not be practical" to complete the offering this year.It appears a U.S. tax issue is the reason for the delay, as Chrysler is currently listed as a limited liability corporation (LLC.) and would need to switch to a "C" corporation designation. Most publicly traded companies are C corporations. We recently reported on Fiat's attempt to buy the remaining share from the United Auto Workers union. The UAW holds a 41.5 percent stake in Chrysler, and Sergio Marchionne, CEO of both companies, has previously stated he would like to merge the two companies to form the world's seventh largest automaker. Marchionne believes that with more centralized control, Chrysler can better compete with larger automakers. And as we recently reported, Chrysler is believed to have a valuation between $9 billion and $16 billion, and advisers were suggesting a valuation of about $10 billion. Chrysler had planned to meet with potential IPO investors the first week of December, but it's not clear whether those plans have been altered on account of the delay. Source: Automotive News (subscription required).
We picked the five biggest turkeys still on sale today.