Ferrari Filing 'Days Away' Says FCA Boss Marchionne
Speaking to reporters in Toronto on Friday, Fiat Chrysler Automobile chief Sergio Marchionne said the official filing to spin off Ferrari could happen within the next few days.
“We are days away from filing the prospectus,” Marchionne said, according to the Detroit News.
The future standalone supercar maker will make available 10 percent of the company through its initial public offering, which is widely expected in October. The remainder of the company will be held by Fiat investors and Enzo Ferrari’s son, Piero Lardi Ferrari, who is vice chairman of the company.
The move to spin off Ferrari is part of a larger plan to reinvest $61 billion back into FCA to fund future development for its range of vehicles.
Last week, Marchionne said Ferrari could be worth about $11 billion, or around 60 percent of FCA’s current market cap value. Analysts predicted the Maranello-based car maker would be worth roughly half Marchionne’s estimate. Despite building around 7,000 cars a year, Ferrari generates considerable profits for parent-company FCA.
Marchionne also denied that FCA would make a hostile bid to takeover General Motors in an effort to consolidate costs and boost profits. Marchionne has been looking for a partner — particularly GM — to offset rising investment costs.
“There are other, less optimal combinations,” he said.
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So far it seems that if they earn 1.1 billion from this it will go to paying 700 million in recall fines.
Sergio is a sharp guy. Ferrari leadership has been protected from growth pressures for its entire existence. Enzo just had to answer to the Agnelli's. Make some nice cars, win some races, keep things interesting. Now Sergio wants to make some real money to finance his planned buyout of another large auto manufacturer. He knows he can never coerce Ferrari to grow to its capable size. The shareholders, however. They are going to eat ferrari management for lunch unless they start putting up quarter after quarter and year after year numbers. The downside: ferrari's best racing days are probably behind them. That is not a sport that you win at through fiscal responsibility.
Since when did selling 10% of the shares of a company constitute a spin-off?
Sergio, get yourself a new barber. That's a terrible haircut.