Chrysler IPO Valuation, $10 Billion Target, will Affect Fiat
Chrysler is looking to go public, and an IPO could take place as early as next month. Before an Initial Public Offering, the automaker must first receive a valuation, one that Chrysler advisers estimate could be about $10 billion. According to a report in the Detroit Free Press, investment bankers are discussing a figure between $9 billion to $16 billion.The valuation is especially important as Sergio Marchionne, CEO of both Fiat and Chrysler, has been looking to purchase the remaining stake of Chrysler from the United Auto Workers union. The UAW has rejected Fiat's previous offers, and the two sides are about $1 billion dollars away from the figure the union is looking to get. As mentioned in the report, a $10 billion valuation would put the company well below the $15 billion market capitalization of California-based electric car maker Tesla Motors, which has seen its stock price fluctuate considerably in the past few weeks. Given a $10 billion valuation, it would make the UAW's 41.5 percent stake worth $4.15 billion, a figure considered to be much higher than what Fiat is looking to pay. Marchionne believes with greater control of Chrysler, he can unite the companies and compete with larger automakers. Marchionne also said the markets will decide what Chrysler is worth, stating "it will become very clear exactly what the markets think Chrysler is worth, which is the only real reference point."Source: Detroit Free Press
The Mercedes-Benz SLS AMG Black Series supercar is a performance version of a performance beast, watch it rip...