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05-23-2006 01:12 AM |
Fiat to buy back Ferrari shares
As many of you will know Fiat was in the ditch couple of years ago and sold 34% of Ferrari shares to a bank. Now that Fiat's all feeling better, 29% will be bought back, bringing the big family back together again...under the strictest control under Fiat...Perhaps not.
Quote:
TURIN (AFX) - Fiat SpA CEO Sergio Marchionne said Fiat will buy back shares in its Ferrari SpA unit which it sold to Mediobanca SpA and others in 2002.
Fiat sold a 34 pct stake in Ferrari to Mediobanca, which subsequently sold stakes to other investors, including ABN Amro Holding NV, Commerzbank AG, and Banca Popolare dell'Emilia Romagna.
'Ferrari is strategic for the group. We will get back the 29 pct which is in the hands of others,' he said.
Explaining the discrepancy between the 34 pct and 29 pct, officials said Fiat might not buy back 5 pct sold by Mediobanca to an Arab investor.
Fiat has a right to buy back all of the stake sold to Mediobanca under an option agreement included in the original deal.
Marchionne said the talks on buying back the Ferrari stake are 'very advanced' and should be completed by the end of June.
According to Fiat's latest annual report, the price of the buyback under the option agreement is 775 mln eur price at which the 34 pct stake was sold plus interest rates.
Turning to forecasts for Fiat Auto, Marchionne reiterated that it is too soon to change the prediction of a 200 mln eur full-year operating profit, and that any change will be made after the second or third quarter.
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http://www.forbes.com/markets/feeds/...fx2763517.html |
