Fiat Chrysler to spin off Ferrari




Fiat Chrysler Automobiles plans to spin off luxury sports car maker Ferrari and list the shares,

Reuters reported.

Fiat Chrysler is also planning a $2.5 billion convertible bond issue to fund its business plan, the report said.


The company moved its primary share listing to New York in October. It will list a 10% stake in Ferrari in a public offer. The remaining 80% stake held by Fiat Chrysler will be distributed to shareholders, including Fiat's founding Agnelli family. The Agnellis control 30% of Fiat Chrysler, the Reuters article said. Piero Ferrari, son of founder Enzo Ferrari, owns a 10% stake in Ferrari.


Fiat Chrysler CEO Sergio Marchionne will remain chairman of Ferrari after the spin-off, the Reuters report said.

A




Wall Street Journal




article noted

that Ferrari's former chairman, Luca Cordero di Montezemolo, who held the post for 23 years, had opposed a Ferrari IPO.


The Agnelli family's holding company, Exor, will invest €600 million in the convertible bond, Reuters reported. (Sources: Reuters, Oct. 29, 2014;


Wall Street Journal


, Oct. 30, 2014.)

About the Author(s)

This is your 1st of 5 free articles this month.

Introductory offer: Unlimited digital access for $5/month
4
Articles Remaining
Already a subscriber? Please sign in here.

Related Articles

KEEP IT IN THE FAMILY

The Family Business newsletter. Weekly insight for family business leaders and owners to improve their family dynamics and their businesses.