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Chrysler files for initial public offering

  • The Chrysler Group has filed paperwork for an IPO for a number of its shares, marking the first time since 1998 that the company's shares would be traded publicly. 

    The move happened at the command of United Auto Workers retirement fund, which provides medical coverage for 115,000 of the company's former workers and also owns 41.5 percent of the company. 

    The maximum price proposed by the company is $100M but there's a chance that might change. 

    This move might annoy the CEO of Flat who is also the CEO of Chrysler, owning the rest of the 58.5 percent of the company. Sergio Marchionne is looking to merge the two of his companies but the trust doesn't think that it is a viable option since Flat is not willing to pay as much as th company's stake is worth. 

    A professor at UC Berkley said, "the union took a very high risk when it accepted shares in a bankrupt company four yars ago to cover health care for retirees. Now they want to share in Chrysler's success."

    Tagged as: company IPO, initial public offering, Chrysler group IPO, Chrysler company shares, money news, business news