[steinravnik]

Fiat Chrysler Automobiles NV (FCAU) plans to spin off Ferrari by selling 10 percent of the sports-car unit’s shares and giving the rest of its 90 percent stake to its own shareholders.

The separation will be complete next year, the company formed from the merger of Italy’s Fiat and U.S. automaker Chrysler said today in a statement. Ferrari shares will be listed in the U.S. and possibly also in Europe, the company said.

Ferrari and FCA need to “pursue separate paths” as FCA tries to increase its net income fivefold to about 5 billion euros in a five-year expansion plan targeted for completion in 2018, Chief Executive Officer Sergio Marchionne said in the statement.

http://www.bloomberg.com/news/2014-10-29/fiat-chrysler-will-spin-off-ferrari-sports-car-unit.html

 

[Mentat Bashar]

Oh my.

 

[nadepalma]

Almost too hard to imagine. After stating for months now that this wasn't on the table, they've now decided to do so. Piro Ferrari has a 10% stake in the company as part of the agreement when Ferrari was taken over by Fiat. I'm sure this will dilute his shares and potentially kill any association between the marque and it's founding family.

More importantly though, I wonder if this will make Ferrari a potential (but unlikely) takeover target? The article states that FCA will sell "10 percent of the sports-car unit’s shares and giving the rest of its 90 percent stake to its own shareholders." If that's the case then Exor (the Agnelli family controlled investment company) will control a significant stake as they are FCA's largest shareholder. That alone is likely to keep takeover candidates at bay, but you never know ---- Especially with Ferdinand Piech always lurking around.

Of course, if I were the Agnelli's and were looking for a way to spread out development costs of a newly "independent" Ferrari, I'd make an offer to the Italian investment company (Investindustrial) that currently owns a significant stake in Aston Martin. IMHO, that would be a very interesting luxury/sportscar group to see.

 

[rsbaker]

I'm sure some chinese company is getting out its check book right now.

 

[EJD1984]

This actually makes perfect sense. FCA is in the midst of cross consolidating vehicle platforms and technology between Chrysler and Fiat. With Ferrari being such a specialized automaker, they really have nothing to offer the other two car divisions.

FCA's thinking is most likely - “Why carry the extra car division that we really can’t fully utilize within the company”

 

[Ruperts Trooper]

This actually makes perfect sense. FCA is in the midst of cross consolidating vehicle platforms and technology between Chrysler and Fiat. With Ferrari being such a specialized automaker, they really have nothing to offer the other two car divisions.

FCA's thinking is most likely - “Why carry the extra car division that we really can’t fully utilize within the company”

Except potential profits and a halo effect.

 

[zl-1]

Except potential profits and a halo effect.

Exactly. I'm quite surprised by this.

 

[Chassis Guy]

I'm surprised, too. I have been very skeptical of Sergio's moves, and anticipated a dilution of Ferrari's "core" as he tried to make it more of a mass market brand. I actually think this will be better for Ferrari - IF the FIAT crowd stays at arm's length, and lets Ferrari be what they need to be.

 

[fastball]

Someone from the Ferrari family needs to pony up the cash to buy that company back, bring it back private, and bring it back to it's roots.

Enzo is rolling in his grave right now.

 

[SP1966]

Fiat should sell Ferrari and Maserati, spin off Chrysler, and close everything else.

 

[FUTURE_OF_GM]

I LOVE seeing an over-hyped brand crumble!

 

[LetsRace]

Plot twist: Ford buys the majority of the shares.

 

[GM-10]

So how much will Herr Piech pay for Ferrari???

 

[fastball]

Plot twist: Ford buys the majority of the shares.

Now THAT would be perfect!

 

[dslay04]

I think this is bad for Ferrari. They'll be pushed to water down their exclusivity for more sales to satisfy shareholders.

Could VW do a hostile takeover of Ferrari? That would be veeeeeeeeeeeeeeeeeeeeeeeery interesting

 

[richmond2000]

I think this is bad for Ferrari. They'll be pushed to water down their exclusivity for more sales to satisfy shareholders.

Could VW do a hostile takeover of Ferrari? That would be veeeeeeeeeeeeeeeeeeeeeeeery interesting

I wonder how much this is "pressure" from FCA share holders as the SHARE HOLDERS get 90%

 

[JBsZ06]

I still believe vW will own alfa one day.

They offered 2 billion and Sergio still said no.

He would be better off selling off Alfa to vW ......in my opinion..

 

[ausrutherford]

VW is licking its lips.

 

[AMERICA 123]

Almost too hard to imagine. After stating for months now that this wasn't on the table, they've now decided to do so.

Piro <msp> Ferrari has a 10% stake in the company as part of the agreement when Ferrari was taken over by Fiat. I'm sure this will dilute his shares and potentially kill any association between the marque and it's founding family.

No, that remains as one would fully expect, the same.

Some confusion created in how they wrote and then how people apparently read the Blommberg article.

Essentially..... the '90' % is the 90 % outside the 10 % Piero holds..... of which 10 % within the 90 % will go to market first.

So how much will Herr Piech pay for Ferrari???

Yes..... that is a good question.

Real interesting to think thru how all this might play out ( key word 'might' )..... in so many ways.

Potentially could perhaps end up a much more clever move than it currently appears....


Depends, depends..... we shall see.


'Seems' more of a Board forced move though.

Then again.... Marchionne can truly make work some interesting magic in so many ways.

 

[Iron_Cross]

I LOVE seeing an over-hyped brand crumble!

Like GM and the rest of the Yank brands.... yes that was great I agree.