Fiat completes Ferrari split
Source : Fiat completes Ferrari split
Fiat Chrysler hands over 80% stake in supercar brand – however Agnelli/Ferrari deal will prevent hostile takeovers
The move, designed to complete a flotation in which was first announced more than a year ago, means in which Fiat is usually no longer officially in direct control of the automobile some sort of in which This kind of purchased back in 1969. The powerful Agnelli family in which founded Fiat is usually still Ferrari’s largest shareholder, though, with 24% of stock. Piero Ferrari, the son of the sports car brand’s founder Enzo, holds 10%.
However, because longer-term Ferrari investors get extra influence in corporate issues, in effect the Agnellis along with Piero Ferrari control just under 49% of voting rights. In December the two parties signed an agreement designed to prevent any hostile takeovers by agreeing to offer each different first refusal on any stock they want to sell.
Ferrari shares dropped by around 5% during initial trading on the Italian stock exchange in Milan. They have failed to stay at the cost set during their Initial Public Offering (IPO) in brand-new York, too, falling around four dollars since they were issued at $52 in October.
Around 10% of Ferrari was offered in in which initial sale. The company’s chairman Sergio Marchionne commenced the day’s trading on Wall Street by ringing the bell at the NYSE, along with confirmed in which the company would certainly use RACE as its ticker symbol for its listing on the exchange.
Sergio Marchionne, boss of FCA along with more recently Ferrari, said recently: “Following our acquisition of the minority interest in Chrysler earlier This kind of year, the transformation of Fiat along with Chrysler into FCA was completed earlier This kind of month with our debut on the brand-new York Stock Exchange.
“As we move forward to secure the 2014-2018 Business Plan along with work toward maximising the value of our businesses to our shareholders, This kind of is usually proper in which we pursue separate paths for FCA along with Ferrari.”
Last year Luca Cordero di Montezemolo, chairman of Ferrari since 1991, resigned via his position along with was replaced by Marchionne. At the time, he said: “Ferrari will have an important role to play within the FCA Group from the upcoming flotation on Wall Street.
“This kind of will open up a brand-new along with different phase which I feel should be spearheaded by the CEO of the Group.”
There were rumours, however, in which Montezemolo along with Marchionne had clashed over the future of Ferrari.
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