Confirming the rumors that we heard earlier in the year, Fiat CEO Sergio Machionne has just informed investors that the company plans to sell part of Ferrari , probably due to the fact that they plan on buying up more of Chrysler .
There have been rumors going around that Volkswagen was considering buying part of the Italian sports car brand. Morgan Stanley analyst Stuart Pearson, who attended the meeting, revealed to clients on Monday that Fiat is planning an initial public offering of Ferrari stock, according to Automotive News.
“We left Turin with the clear message that Fiat and Chrysler will become one company,” Pearson said. “A Ferrari initial public offering and potential Marelli disposal may need to come first, according to management.”
Who would have thought that Ferrari would be sold off for a company to get Chrysler? Still, Fiat will likely keep at least 51% of the stake in Ferrari, an automaker that is worth around $3.3 billion. What is this world coming to?