Fiat/Chrysler to Spin Off Ferrari ! | FerrariChat

Fiat/Chrysler to Spin Off Ferrari !

Discussion in 'F1' started by barndoor, Oct 29, 2014.

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  1. barndoor

    barndoor Karting

    Aug 3, 2008
    54
    oregon
    Full Name:
    mr smith
    Fiat is going to spin off Ferrari into a separate company.

    "Fiat-Chrysler Automobiles announced this morning that it plans to spin off Ferrari in a public listing. The Italian manufacturing conglomerate has owned the smaller sports car company for 45 years, and now, they're parting ways."
     
  2. 4rePhill

    4rePhill F1 Veteran

    Oct 18, 2009
    8,178
    Worcester, England
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    Phill J
    Already being discussed here: https://www.ferrarichat.com/forum/ferrari-discussion-not-model-specific-sponsored-algar-ferrari/466084-fiat-sells-ferrari.html

    And here: https://www.ferrarichat.com/forum/ferrari-discussion-not-model-specific-sponsored-algar-ferrari/466064-fiat-spin-off-ferrari.html

    They're putting 10% of Ferrari up for sale - Not quite selling it off completely!

    The Agnelli family still own 30% and Piero Ferrari still owns 10%.

    This "sell off " will make very little difference to Ferrari as a company!
     
  3. Cariad

    Cariad Formula Junior

    Jan 1, 2006
    445
    Any F1 Circuit
    Not true, the 90% will be owned by FCA shareholders who can sell on the open market.
    If all Fiat/ Chrysler shareholders sold their Ferrari shares, the family and Piero would be in the minority.
    In any case I am sure that they both would offer a chunk of their Ferrari shares in the market to capitalize on perceived value
    /
     
  4. 4rePhill

    4rePhill F1 Veteran

    Oct 18, 2009
    8,178
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    Phill J
    And that's going to happen isn't it!

    Goose/Golden eggs ring any bells?
     
  5. VIZSLA

    VIZSLA Four Time F1 World Champ
    Owner

    Jan 11, 2008
    41,690
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    Fiat needs cash now. It's about the money.

    It appears that the deal is structured to leave Ferrari with a mountain of debt. The days of unlimited racing budgets are about over.
     
  6. TOOLFAN

    TOOLFAN F1 Rookie
    Rossa Subscribed

    Mar 23, 2005
    2,807
    California
    The Agnelli family does not own a 30% stake in Ferrari. Exor owns a 30% stake in FIAT/Chrysler. Ferrari's ownership breaks down like this: FIAT owns 85%, Piero owns 10% and the Mubadala Development Company owns the remaining 5%.
     
  7. VIZSLA

    VIZSLA Four Time F1 World Champ
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    How much of Fiat does the family own?
     
  8. ELP_JC

    ELP_JC Formula 3

    Dec 13, 2008
    1,264
    Indeed. Marketing hyperbole. Fiat is probably never going to let Ferrari out of its control. I bet it's the most profitable company they own :). Or at least the most successful by far. And yes, those unlimited F1 budgets will come crashing down sooner rather than later. The world economy is going to take a long time to recover.
     
  9. TOOLFAN

    TOOLFAN F1 Rookie
    Rossa Subscribed

    Mar 23, 2005
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    They own 51% of Exor and Exor owns 30% of FIAT, but directly? Nothing.
     
  10. VIZSLA

    VIZSLA Four Time F1 World Champ
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    Jan 11, 2008
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    Thanks.

    As I understand the deal Fiat shareholders will get Ferrari stock.
     
  11. 09Scuderia

    09Scuderia Formula 3

    Nov 20, 2011
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    Max
    bring on the new Dino and a Ferrari sedan...and....SUV.
     
  12. crazyblack

    crazyblack Karting

    Aug 6, 2011
    212
    Germany
    Full Name:
    Oliver
    That's right. Exor will get 25,54% of Ferrari shares.
    It's a smart way for the Agnelli/Elkann family to sell FCA and keep Ferrari.
    Today, they would lose both if they sell FCA.
     
  13. patekswiss

    patekswiss Formula 3

    Mar 31, 2014
    1,174
    New York City
    Full Name:
    Lorenzo
    I keep seeing folks saying that they're going to lever up Ferrari as part of this.

    I didn't see anything suggesting that in the announcement. The $2.5 bn convertible offering is at the FCA level.

    Is there something I'm missing?

    Thanks
     
  14. rmani

    rmani F1 Veteran
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    Nov 1, 2003
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    worst fears appear to be happening. soon a "ferrari" will be parked on every street just like porsche. Will we still love them? Absolutely, but not the same way.

    As far as I'm concerned I see too many Ferraris now.
     
  15. VIZSLA

    VIZSLA Four Time F1 World Champ
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    Obviously the announcement doesn't include the actual language of the agreement (if there is any yet) but those familiar with this sort of deal believe that Ferrari will be left holding the bag.
     
  16. patekswiss

    patekswiss Formula 3

    Mar 31, 2014
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    Lorenzo

    This is a spinoff. At this stage of a spinoff, there isn't any agreement.

    I'd be healthily skeptical of "those familiar with this sort of deal." Lots of self-appointed experts running around! :)
     
  17. VIZSLA

    VIZSLA Four Time F1 World Champ
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    Jan 11, 2008
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    On the interweb?

    Gosh.
    ;)
     

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