Ferrari Share Sale To Net $11 Billion Dollars
Industry News

Fiat boss, Sergio Marchionne, expects Ferrari to be valued at $11 billion dollars when he puts the supercar marque up for sale later this year. Marchionne hopes the sale will fund plans to invest back into the Fiat Chrysler operation.

Fiat is selling 10 percent of Ferrari as part of an initial public offering with the remaining 80 percent being distributed to Fiat Chrysler investors. The founder of Ferrari, the late Enzo Ferrari, will be represented by his son who is anticipated to keep his 10 percent holding.

Marchionne wants to increase Fiat Chrysler’s global deliveries to 7 million by 2018 and the sale of Ferrari will go some way toward meeting these goals, Fiats stock has risen by 33 percent so far this year.

But many analysts are predicting Marchionne’s target of 7 million deliveries by 2018 is almost impossible to achieve as the company has failed to deliver on previous ambitions.

Ferrari’s fiscal operations will be headquartered in the UK and when it lists on the New York Stock Exchange it will be as a Dutch holding company.

Marchionne explained Ferrari would always be based in Italy where it will continue to pay taxes.

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