motor

HeilSvenska · 05-23-2006, 01:12 AM

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.

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.

http://www.forbes.com/markets/feeds/...fx2763517.html

Everlasting · 05-23-2006, 02:06 AM

good news

HeilSvenska · 05-23-2006, 04:47 PM

Perhaps there was a note of sarcasm at my initial post?

Sir_GT · 06-05-2006, 03:31 AM

Fiat's done mighty well with the new Grande Punto. They know what models to release now. Expect all the other new models to be in the same in the good looks department.

blinkmeat · 06-05-2006, 05:22 AM

GM basically gives them 2 billion and they buy back Ferrari stock ... Unbelievable

FEBRUARY 15, 2005

NEWS ANALYSIS
By Gail Edmondson

GM Leaves Fiat in the Dust
The U.S. auto giant is forking over $2 billion so it won't have to buy the Italian carmaker. Now, can Fiat reverse its troubled course?

General Motors (GM ) shareholders can sleep easier now that the company no longer risks being forced to buy ailing Italian carmaker Fiat Auto. On Feb. 13, GM agreed to pay $2 billion to terminate the five-year-old put option that gave the Italian industrial conglomerate Fiat Group (FIA ) the right to sell Fiat Auto to GM for a fair market price.

http://www.businessweek.com/bwdaily/...8224_db016.htm