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Ferrari's value to exceed $11 billion in IPO

1K views 7 replies 7 participants last post by  mbukukanyau 
#1 ·
Ferrari's value to exceed $11 billion in IPO, Marchionne says
July 3, 2015

(Bloomberg) -- Sergio Marchionne, CEO of Fiat Chrysler Automobiles NV, expects the company's Ferrari supercar unit to be valued “at least” at $11 billion (10 billion euros) in an initial public offering scheduled this year.

“There are clear expectations from ourselves as Ferrari brand is unique,” Marchionne said Friday at the presentation of the new subcompact Fiat 500 in Turin, Italy. “There is also a scarcity value as we are just selling a 10 percent stake.”

Fiat Chrysler announced plans last year to sell 10 percent of Ferrari and distribute its remaining 80 percent stake to Fiat Chrysler investors.

Piero Ferrari, the son of founder Enzo Ferrari, also owns 10 percent and plans to keep his holding.

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#2 · (Edited)
This change won't make much of a difference for who controls the company. If FCA shareholders end up keeping all but 10%, then Exor/the Agnelli family will keep control of the Prancing Horse.
AutoNews.com said:
Ferrari, whose logo features the flag colors of its home nation Italy, plans listing on the New York Stock Exchange as a Dutch holding with its fiscal residence in the U.K., Marchionne said Friday.

The plan would mirror the multi-national structure used for parent company Fiat Chrysler.
That's a bit surprising. I thought I remembered him stating that it would most likely be incorporated in Italy.

AutoNews.com said:
Marchionne said the operative Ferrari unit will continue to be based in Italy and pay taxes there. Creating a Dutch Ferrari holding shows “the world has changed and required capacity from countries to adapt,” Marchionne said.
Translation: Get your s**t together Roma! Your tax structure and regulatory house is uncompetitive for a multinational business to serious consider La Bell'Italia home. You can't honestly believe that sunny shores, beautiful weather, and an exciting Latin drama and culture will make companies overlook getting pick-pocketed.

Now that I think about it, maybe Washington....uh....nevermind.
 
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#5 ·
Super cool website.

I don't mean to hijack, however I was curious where Cadillac ranked among the Germans. I thought conservatively that Cadillac would be ranked 50 spots below them. But to my surprise, Cadillac doesn't even rank in the top 500, wow. Branding is critical for any luxury product manufacturer. This clearly illustrates Cadillac's dire position in the market.
 
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