Loser JP Morgan becomes Chrysler's chief advisor

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JPMorgan, the bank that lost almost $2bn during Chrysler Group’s 2009 bankruptcy, is now its chief advisor as the automaker’s two owners haggle over its value.

Bloomberg reports that JPMorgan will advise Chrysler in the event of its sale to majority shareholder, Fiat SpA, said people with knowledge of the matter who asked not to be identified because the information is private. The bank was also listed this week as the lead underwriter of an initial public offering of Chrysler shares owned by the company’s other shareholder, a United Auto Workers retiree trust.

The dual role highlights the complicated path Chrysler has been forced to take to resolve a dispute between its two backers. Sergio Marchionne, the chief executive officer of both Chrysler and Fiat who has spent four years seeking to merge the companies, is at loggerheads with the UAW’s trust over the value of its 41.5%  stake in Chrysler. Letting public investors put a price on the stake, through the IPO process, is one way to resolve the matter.

The bank isn’t alone. The UAW’s trust, known as a VEBA, has picked Deutsche Bank to represent it on both the IPO and the potential stake-sale to Fiat, people said.

To access the complete Bloomberg article hit the link below

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