Saturday, October 12, 2013

Fiat Marchionne Chrysler IPO denies analysts dissed

Fiat Marchionne Chrysler IPO denies analysts dissed
Chrysler and Fiat are deny Sergio Marchionne told analysts and investors that it would not be better served in the Chrysler-IPO invest if the smallest of the big three automakers a public offer of shares.

In a brief release issued Thursday morning Fiat said: "in response to various media reports, Fiat denies S.p.A./Chrysler-Gruppe strong, that Mr. Sergio Marchionne, Fiat CEO and Chrysler Group Chairman and CEO comments on Chrysler Group, with him in a Sanford ascribed to C. were Bernstein earlier this week."

The refusal comes Warburton Marchionnes comments at a Bernstein Conference less than 24 hours after Bernstein Analyst Max summarized as CEO doesn't really buy the impression in a Chrysler IPO value.

Warburton wrote: "Marchionne spoke at our Amber Conference and some of the positive comments on Chrysler perspectives."But he argued that while he believed Chrysler had attractive prospects, he wouldn't that invest over this partial IPO the most attractive way for investors believed (implied through Fiat or a future list of Fiat-Chrysler to invest was attractive)."

Fiat says, is not correct. It says, "the report Mr. Marchionne presentation took place on a Fiat investor meet and is not exactly mischaracterizes his comments."

Still no roadshow

Three weeks after the Chrysler-S-1 was filed, have the banks under partial IPO still plan a road show. The Roadshow will be monitored closely for a number of reasons. First, they give a chance to dive Wall Street further into the finances and the future growth prospects for the automaker. Secondly, it will be an opportunity for analysts to see, just like Marchionne handled the difficult position he finds himself in.

As CEO of Chrysler, Marchionne has to put the automaker and the growth prospects in the best light. At the same time, Marchionne said in the past, what he's not thinking, is a partial IPO of the best option for growing Chrysler business and as a result a stronger automaker. He said Fiat should buy all Chrysler and then, when the time is right, output a list of Fiat/Chrysler shares.

The problem for Marchionne is the UAW VEBA trust, which owns 41.5 percent of Chrysler and is giving 16 percent of Chrysler shares, which are sold to the public. The VEBA trust and are Marchionne billions apart on the value of the 41.5 percent who want to buy Chrysler-Fiat.

That is why the VEBA trust is pushing this IPO. She wants to see if the market agrees, and values the automakers at a higher price than Fiat is ready to pay immediately.

Given the differences between Marchionne and the VEBA trust, Warburton says "The boat will not swim."

"While Marchionne leads the Roadshow and conveys a reliance on the value of Chrysler, not the process to end run safely. Investors are probably required to specify what they are willing to pay for Chrysler shares and this is an additional data point for negotiations with the VEBA. But the investment banks and lawyers are involved in the process is expected to complete the IPO, for see "said Warburton.

"If all young bankers or lawyers who read this on the deal, is here's some advice: stop all night to run spreadsheets and proof documents." Now and go home tools. "This deal is probably never going to happen."

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