Source: Fiat SpA; Ferrari SpA
According to reports, Ferrari’s shares will be listed in the United States and perhaps on a European exchange. Reuters cited FCA CEO Sergio Marchionne:
As we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari.
That business plan calls for FCA to invest $61 billion over five years to boost sales of its hot-selling Jeep brand and to bring back the Alfa Romeo luxury brand, among other things. Marchionne said he had no plans to issue more stock in the near term, and a public offering of Ferrari stock doesn’t exactly fly in the face of that statement.
Long-time Ferrari CEO Luca di Montezemolo left the company in September following a disagreement with Marchionne on the best way to move Ferrari forward. Marchionne wants to increase production to 10,000 cars per year, up from the 7,000 target that Montezemolo had set.
Marchionne likely also wants to separate Ferrari’s expensive racing team from FCA. The racing team failed this year to place a driver among the top three in any Italian Grand Prix event for the first time since 2008. Ferrari also failed to win the carmaker’s prize for the first time since 2008 as well.
John Elkann, FCA’s chairman and the scion of the Agnelli family, which owns a controlling stake of nearly 50% of the voting power of FCA through its Netherlands-based holding company Exor, reportedly said that the separation of Ferrari from FCA will “preserve the cherished Italian heritage unique position of the Ferrari business.”
FCA’s stock was up nearly 12% Wednesday morning, at $10.89 in a post-IPO range of $7.20 to $12.35.
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