Ferrari Sale: $1.1 Billion to FCA?
The public offering of Ferrari as a separate corporation may provide $1.1 billion to Fiat Chrysler, according to CEO Sergio Marchionne, as quoted by Bloomberg News.
The $11 billion figure is for all of Ferrari, and is based on Mr. Marchionne’s valuation. 10% of Ferrari will remain in the hands of Piero Ferrari, the son of the founder, and 80% will be given to FCA stockholders.
FCA as a whole is currently valued at $18.4 billion (based on the price of one share of stock, $14.29, times the number of outstanding shares). That leaves the former Chrysler and Fiat groups at $7.4 billion, assuming Mr. Marchionne’s value for Ferrari, a company with a respected and valuable name but only 7,000 car sales per year, is accurate. (...) →