By this time next year, Ferrari will no longer be a part of Fiat Chrysler Automobiles, thanks to a plan announced today that will spin the exotic brand off from the rest of the Italo-American automaker.
Bloomberg reports FCA will sell 10 percent of its stake to the public, giving the remaining 90 percent to the automaker's own shareholders. The shares will be listed in the United States stock market, with Europe possibly receiving some of those shares, as well.
According to Morningstar analyst Richard Hilgert, the split "unlocks the value" in the Ferrari brand, which could be worth as much as $7.4 billion. He adds that the move helps pull Ferrari out of the shadow of FCA, citing "the street's perception of low profitability to no profitability" regarding the automaker's market performance.
Speaking of performance, FCA stock climbed to $11.56 Wednesday after opening at $11.31, falling to $10.85 at the closing bell. Ferrari stock, meanwhile, would go for $5.90/share for FCA shareholders.
The post FCA Spinning Ferrari Off From Parent Company By 2015 appeared first on The Truth About Cars.
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