....The Italian car giant Fiat has opened negotiations with the investment bank Mediobanca to buy back its 29 per cent stake in Ferrari...
Fiat has an option to acquire the Mediobanca holding in Ferrari for around Euro800m (£550m). It also owns a 2 per cent stake in Mediobanca, currently worth around Euro200m. Analysts anticipate a share-swap....
Mr Montezemolo has repeatedly underlined the importance of Ferrari for Fiat, on account of its research and development strength as well as its brand image. Ferrari has enjoyed years as the leading team in Formula One.
Fiat sold a 34 per cent stake in Ferrari to Mediobanca in 2002 with a call option that expires at the end of June. Mediobanca has since reduced its holding, selling a 5 per cent stake to Abu Dhabi's investment arm, the Mubadala Development Company. Currently, Fiat has 56 per cent of Ferrari, with the son of the founder, Piero Ferrari, owning 10 per cent....
Fiat reported profits of Euro1.2bn last year, with its car division returning to the black in the final quarter.
The new Grande Punto has proved a success, with predicted sales this year of 360,000, enabling the Fiat car division to forecast operating profits of Euro200m. Profit margins, however, remain tight....