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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Chrysler CEO Marchionne took no pay in 2011

NEW YORK — Sergio Marchionne declined to take a salary from Chrysler for 2011 despite leading the automaker to its first profitable year since 1997.

Marchionne didn't take a salary, bonus or stock option reward as CEO, president and chief operating officer of Chrysler Group LLC, the company disclosed in a regulatory filing late Tuesday. He is compensated by Fiat SpA, where he also serves as CEO. The Italian automaker owns almost 60 percent of Chrysler.

Last month, Chrysler reported earnings of $183 million for 2011, returning to a profit for the first time in 14 years. At the time, Marchionne promised that both hourly and salaried workers would receive bonuses based on last year's profit.

Chrysler didn't say why Marchionne decided to forgo compensation.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Marchionne says that Chrysler IPO could be delayed

TURIN, Italy Fiat and Chrysler CEO Sergio Marchionne Wednesday proposed that Chrysler of its initial public offering of the demand of the US automaker and the auto workers union Trust Fund cash can delay.

Marchionne has already indicated that an IPO could happen by the end of the year.

He said a decision on, if and when to Chrysler public how much the automaker would depend on itself and the United Auto workers healthcare trust, which pays health benefits for pensioners and need a 63.5% in Chrysler, liquidity market share.

"If these two needs are not present, then the IPO of Chrysler can or may be irrelevant," Marchionne told reporters after a Fiat shareholders meet.

But he added: "It is rational, perhaps useful, to expect that it will have an IPO." It can be done very quickly. We stored in the SEC, we are working even our way through the comments. We have, once again implemented a public company, and issue of securities takes time. "We should do it properly."

Fiat SpA, which took over management of Chrysler LCC 21 months, increased its stake in the once bankrupt automaker, Detroit number three to 25 percent this year. Marchionne confirmed that it expects that to increase it to 35 percent by the end of the year. At this point, it could go further and increase your participation on 51 percent majority stake if Chrysler pays loan to the U.S. and Canadian governments back. Marchionne is talking to banks about refinancing.

"Our goal remains to achieve a participation of more than 51 percent in the year," said Marchionne. Chrysler IPO could start at this point.

Marchionne Fiat had other options for its stake over 51 percent continue to increase, said the Treasury an additional 8 percent stake - including the possibility, he said to acquire. Treasury has 9.2 percent of Chrysler, while the Government of Canada holds a further 2.3%.

Marchionne also said that Chrysler production likely "created by the supply chain problems earlier this month by the tsunami and the earthquake in Japan will be loaded". Chrysler has already said it has to stop because a specialized pigment is produced in Japan not available, the orders for certain colors and Marchionne said, deployment of electronic components for Chrysler has slowed down.

"It likely negative effects on production, in particular in the United States", said Marchionne. He will not be models or appreciate otherwise possible production delays.

"It is an evolving scenario." ... What we want is a dislocation of anywhere one to three weeks, "Marchionne said."

Fiat European and Brazilian companies apparently not be affected, he said.

Katie Hepler, a spokeswoman Chrysler at the headquarters in Auburn Hills, Michigan, would not possible U.S. production cuts Wednesday comment.

Marchionne said shareholders earlier that could potentially generate the two automakers billions combined revenues of euro100 ($141 billion) up to 2014.

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.

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