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Fiat pondering swallowing rest of Chrysler, US IPO

At the moment, Fiat is in court with the United Auto Workers, waiting for the justice system to provide some guidance on a fair price for 41.5-percent of Chrysler it doesn't own. Fiat owns 58.5 percent of the company and wishes to buy the remainder, which is owned by the union's VEBA retiree trust, but the Italian company and the UAW are on different sides of the galaxy when it comes to assigning a fair price to that outstanding stake.
Naturally, Fiat CEO Sergio Marchionne is considering his options. A new report in the The Wall Street Journal says one of the scenarios being considered now is - depending on the outcome of the court case - to purchase the 41.5-percent stake and then issue an IPO to recoup some of the cost. About two months ago, Marchionne put the odds of an IPO for a wholly combined Fiat/Chrysler at 50 percent. Even with the WSJ report, it's not clear if those odds have changed.
The current company structure leaves a lot of options as to how a potential IPO could be issued, but it's said that Marchionne is against it, preferring "to be one company," under Fiat, indivisible. If Fiat is finally able to purchase all of the Pentastar, it would get access to Chrysler's war chest, pegged at $11.9 billion at the end of Q3 in 2012, and that money can't come soon enough for a brand taking a beating in Europe and delaying product over cash concerns.

P. Diddy hosting Fiat 500L desert party

Fiat didn't run an advertisement during this year's Super Bowl. We've no idea why, though, because based on this recently released 60-second spot, the Italian brand probably could have done quite well during the big game.
The spot, called Mirage, stars Sean "Diddy" Combs (who happens to be the ex of former Fiat spokesperson Jennifer Lopez) and a pair of very unfortunate pedestrians. Wandering through the desert, the two are confronted by what they think are mirages before stumbling into a giant party hosted by the Grammy Award-winning rapper. It's a humorous spot, highlighting a product that Fiat really needs to succeed, the new 500L.
The Super Bowl-worthy ad is part of a larger campaign that will hopefully help distinguish the four-door L model from its smaller, two-door counterpart. "Too many people discover the 500L through the 500. That's what we have to solve for here," Jason Stoicevich, head of Fiat's brand in North America, told Automotive News. "It's awareness. We know it, we understand it and we had to find a creative way to deal with it."

Fiat talking with banks about buying rest of Chrysler

All that stands in the way of Fiat's total ownership of Chrysler is a 41.5-percent stake currently held by the United Auto Workers healthcare trust, but according to SFGate.com, Sergio Marchionne is currently trying to raise the capital to complete the acquisition. The article says that a deal could be completed in as soon as 12 months, and the estimate for the remaining stake could cost Fiat SpA around $2.98 billion.
With a goal of completing the deal by the end of 2014, Marchionne is said to be in talks with various banks to help finance some of the deal. According to the report, the banks have indicated a need for a stronger balance sheet, controlled debt and reserve cash.
Two things that don't seem to be on the table to get the deal completed include issuing new shares to raise the capital or selling a stake in Ferrari. Fiat started with a 20 percent share of Chrysler in June 2009, and it raised its stake up to 58.5 percent in January 2012.