Volvo Cars Owner Reportedly Selects Major US Advisors To Explore IPO

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(RTTNews.com) - Volvo Cars owner Zhejiang Geely Holding Group Co. has selected Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley to advise on an initial public offering for the Swedish carmaker this year, Bloomberg reported citing people with knowledge of the matter.

China's Zhejiang Geely and Volvo have discussed valuing the Swedish automaker in a range of $16 billion to $30 billion in a stock sale, the report said. The companies held meetings in Sweden and Hong Kong this month to discuss a dual listing in both venues, the report said.

The shares could be sold as early as this fall, though no final decisions have been made and the plans may change. An IPO is an option but the decision is up to the owner, a representative for Volvo Cars reportedly said.

Volvo Cars may seek to benchmark itself against automakers including Hong Kong-listed Geely Automobiles Holdings Ltd. and Tesla Inc. in the potential IPO, the report said. Geely is still finalizing the bank line-up and may add further advisers.

Closely held Zhejiang Geely acquired Volvo in 2010 and then refreshed its line-up of vehicles to make it a popular alternative to German luxury stalwarts.

The Chinese company's Swedish unit holds 99 percent of Volvo Car AB, while a group of Swedish institutional investors holds the remaining 1 percent through another class of shares, according to its website.

Read the original article on RTTNews (http://www.rttnews.com/2894089/volvo-cars-owner-reportedly-selects-major-us-advisors-to-explore-ipo.aspx)

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This article appears in: World Markets , Stocks , Economy , Banking and Loans , Technology , IPOs
Referenced Symbols: C ,

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