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Ferrari Ownership / Mediobanca

Discussion in 'Ferrari Discussion (not model specific)' started by Doody, Feb 20, 2004.

  1. Doody

    Doody F1 Veteran

    Nov 16, 2001
    6,099
    MA USA
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    Mr. Doody
    from what i can ascertain, when Fiat Group sold a 34% stake in Ferrari to Mediobanca in 2002, it contained a repurchase clause of some sort that kicked in June 2004 - just a few months from now.

    does anybody know the terms of that repurchase clause?

    any theories on why Mediobanca bought those shares? presumably they were expecting an IPO and a stellar return on investment? or was it something else?

    any theories on what might happen to those shares? one third of the company is a big number.

    towk amungst yahselves.....

    :)

    doody
     
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  3. 410SA

    410SA F1 Veteran

    Nov 2, 2003
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    Originally the proposed IPO was supposed to be done to keep Luca Cordero a happy camper by giving him a package that would translate into real equity and power, as well as give Fiat some real cash to reduce debt. The market wasn't ready for a Fiat owned company spinoff and the Mediobanca deal was designed as short term measure to provide working capital while the IPO market got better.

    Medio has supposedly syndicated their participation with Lehmann and a couple of other players but I think that the original plan is still there - IPO Ferrari for a couple of Billion dollars, the proceeds of which will be used to pay down Fiat Group debt. Is the market ready? Hard to tell. The staggering value of the Euro against the dollar is doing nobody in Europe any favors and will also keep US institutional money out.
     
  4. WCH

    WCH F1 Veteran
    Owner

    Mar 16, 2003
    5,180
    Not sure how much of this is accurate, from the Ferrari Owners Club website:

    Mediobanca Increases Its Ferrari Stake
    1.11.02
    The Italian investment house Mediobanca has announced that it has increased its holding in Ferrari to 21.5%.

    Mediobanca originally acquired a 34% stakeholding in June 2002 but then announced it had sold 10% to the German Commerzbank and 12.5% to a syndicate of unnamed investors.

    If its remaining 12.5% stake has now been increased back up to 21.5% then it has bought 10% from someone - possibly Fiat or maybe it has re-purchased some of the stock it sold earlier. No details on this latter point are available yet.

    Given Fiat's continuing financial woes it is likely that the extra 10% came from there, meaning that a total of 44% of Ferrari has now been sold.
     
  5. 410SA

    410SA F1 Veteran

    Nov 2, 2003
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    The Fiat Group annual report for 2003 should be available soon. There should be answers there. I believe there is also info available in Mediobanca's financials
     
  6. bobafett

    bobafett F1 Veteran

    Sep 28, 2002
    9,193
    I have heard that is has spread out even moreso than WCH suggests. What percentage does Piero Ferrari own? Does that count towards the FIAT part? My guess is over 50% isn't in FIAT's hands now.

    --Dan
     
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