Fiat considering Ferrari IPO to increase its stake in Chrysler

Article by Christian Andrei, on September 27, 2010

As Fiat S.p.A. looks for ways to fund the acquisition of 51% of Chrysler, it is believed to be considering the possibility of listing part of Ferrari S.p.A., according to Italian newspaper Il Corriere della Sera which cited information taken at Fiat's Turin headquarters. The report stated that Fiat's main priority is to find liquidity to fund the acquisition.

However, a Fiat spokesman said that this report is false and that there are no plans for any Ferrari listing.

Last Thursday, Fiat and Chrysler Group CEO Sergio Marchionne talked about Fiat's future plans with Ferrari. He said that it’s possible that there would be a Ferrari initial public offering before 2014.

But he also stated that he wants to raise Fiat’s stake in Ferrari to 90% from 85% now, if it can be done without dropping Abu Dhabi investment fund Mubadala, which owns 5%.

As soon as restructuring goals are met, Fiat, which owns 20% of Chrysler, is expected to raise its holding to 35%.

It has an option to increase the stake to 51%. From the results of a new study, consultancy Sanford C. Bernstein said it predicts Fiat to increase its stake in Chrysler to 51% in 2011 or 2012.

The Il Corriere report stated that Fiat will keep a majority 51% stake in Ferrari. [via autonews - sub. required]

Topics: fiat, ipo, chrysler

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The Shooting Brake is probably the least rendered body shape in the automotive world. But it’s also the most sought after design among car nuts for its unique, old-fashioned charm....
by - January 23, 2017
Perhaps to make the upcoming Valentine’s day more special, Tinder dating app and Ford UK have cooked up a special blind date for all the single blokes and chicks in...
by - January 23, 2017
2017 is undeniably a very busy year for BMW. After introducing the new 4-Series, the German automaker has just released several new updates. In relation to this, BMW is also...
by - January 23, 2017
The renowned Shelby Super Snake is now 50 years old! As we greet the Super Snake a “happy birthday” or a “happy anniversary,” Shelby itself is celebrating half a century...
by - January 23, 2017
Nearly a year after the Subaru XV Concept was unveiled at the 2016 Geneva Motor Show in Switzerland, this SUV study is making its North American debut at the 2017...
by - January 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries