Anir

The 5/21 issue of Autocar suggests that Fiat may be "selling the crown jewels" (i.e. Ferrari) to address a $5.9 billion debt and falling car sales. Fiat does plan to retain a controlling interest.

Luca di Montezemolo: "It does in fact offer new resources for development projects at Ferrari and Maserati."

Wow.

I wouldn't mind a few shares framed and mounted in a John D II style garage, regardless of actual investment potential.

Viken

If I am not mistaken, 90% of Ferrari is already owned by FIAT Holdings Group which in itself is public. The remaining 10% is still privately owned by Piero Ferrari. I guess they can list the 90% stock separately on the market and raise some serious cash for the ailing parent company.

Anir

[quote]Originally posted by Viken:
<strong>If I am not mistaken, 90% of Ferrari is already owned by FIAT Holdings Group which in itself is public.</strong><hr></blockquote>

Good point, Viken. I meant that Ferrari might be going public as its own entity.

Mike in Chi

Not unlike what MO did with Kraft -- unlock potential.

M. Schneider

The current Economist issue has a article on Fiat's financial difficulties. Their Ferrari holdings are on the block or so reported.
GM is possibly furthering its stake in Fiat to.

"Times they are a changin"

A.J. - 95 993

Is it safe to assume that Ferrari is developing an SUV to "save the company"?? <img src="graemlins/c.gif" border="0" alt="[ouch]" />

Todd

They already make a a "station -wagon" looking Ferrair, for sale only in Euro.

Robert Henriksen

[quote]Originally posted by Todd:
<strong>They already make a a "station -wagon" looking Ferrair, for sale only in Euro.</strong><hr></blockquote>

Ahem, please - an "estate"

Pete in DC

[quote]Originally posted by Robert Henriksen:
<strong>

Ahem, please - an "estate"</strong><hr></blockquote>

Or is it a "shooting brake"?

Viken

[quote]Originally posted by Todd:
<strong>They already make a a "station -wagon" looking Ferrair, for sale only in Euro.</strong><hr></blockquote>

There were only a couple made for the Sultan of Brunei. No station wagons in the lineup.

Viken

[quote]Originally posted by M. Schneider:
<strong>GM is possibly furthering its stake in Fiat to.</strong><hr></blockquote>

GM's stake is restricted in FIAT Automobiles which itself is part of FIAT Holdings, Ferrari's parent company. If it can be helped, Ferrari will remain out of GM's reach.

Anir

[quote]Originally posted by Viken:
<strong>

GM's stake is restricted in FIAT Automobiles which itself is part of FIAT Holdings, Ferrari's parent company. If it can be helped, Ferrari will remain out of GM's reach.</strong><hr></blockquote>

GM currently owns 20% of Fiat, and supposedly has an option to buy the remaining 80% by 2004. Maybe, Ferrari is being spun off to keep it out of GM's hands.

Doesn't completely make sense though, since Fiat currently states that they plan to retain a controlling interest in Ferrari. So....if GM buys all of Fiat, wouldn't GM be the majority owner of Ferrari?

Mike in Chi

Hi Anir

[quote] Doesn't completely make sense though, since Fiat currently states that they plan to retain a controlling interest in Ferrari. So....if GM buys all of Fiat, wouldn't GM be the majority owner of Ferrari? <hr></blockquote>

I think Viken's post explains it. The Ferrari business is seperate from the Fiat Auto business. "Holdings" sells "Autos". Holdings also takes Ferrari public, but holds on to much of the stock (As Phillip Morris kept 80% of the stock when it took Kraft public)

M in C

Viken

[quote]Originally posted by Mike in Chi:
<strong>I think Viken's post explains it. The Ferrari business is seperate from the Fiat Auto business. "Holdings" sells "Autos". Holdings also takes Ferrari public, but holds on to much of the stock (As Phillip Morris kept 80% of the stock when it took Kraft public)</strong><hr></blockquote>

Exactly! GM has no stake whatsoever in the holdings company.

Jim Sullivan

Not too many of these spinoffs have worked when there is no earnings.. ATT sold off Wireless, remember Palm?, or Lucent for that matter, or one of my all-time favorites - Asia Global Crossing. <img src="graemlins/roflmao.gif" border="0" alt="[hiha]" />

I gotta believe Fiat is measuring public sentiment, and if it can sell a small stake in its Ferrari for two the three times what it's worth and fend off GM (which probably has more Fiat than it wants these days), hey, why not.