Delphi Automotive LLP hired Goldman Sachs Group and J.P. Morgan Chase to lead an initial public offering that may raise more than $1 billion, a person with knowledge of the plans said.
Delphi, once the largest U.S. auto parts maker, also hired Bank of America, Citigroup, Barclays and Deutsche Bank as underwriters, said two people, who asked not to be identified because the plans are private. The offering is planned for the third quarter, the people said. The filing may come next week, one of the people said. The IPO may value Delphi at about $10 billion, the other person said.
Delphi, based in Troy, Mich., exited bankruptcy restructuring in October 2009 with four classes of shares. Lenders, including private equity firms Elliott Management Corp. and Silver Point Capital, bought most of the original Delphi and still hold a controlling interest after Delphi bought back stakes from former parent General Motors Co. and the Pension Benefit Guaranty Corp. in March.
Delphi paid $3.8 billion to GM and $594 million to the PBGC to buy back the stakes and simplify its capital structure. GM's class of shares in Delphi was valued at $2.08 billion as of Dec. 31, according to Delphi's year-end financial statement on its website. The Class C membership interest, which was held by the PBGC, was valued by Delphi at $646 million at that time, according to the statement.
