Piero Ferrari Expected To Sign Deal With Agnelli’s To Protect Ferrari (NYSE:RACE)
$RACE, $FCAU
Now that Ferrari NV (NYSE:RACE) is a publicly traded company, 2 Italian auto dynasties are planning a pact to make sure it stays that way.
Piero Ferrari, 70 anni, the son of founder Enzo Ferrari, and the Agnelli Family, heirs of the founder of Fiat, are set to sign an agreement tightening their control over the supercar maker.
Under the terms of the IPO, the 2 families can take advantage of rules that will give them almost 50% of Ferrari’s voting rights, rendering any potential takeover impossible.
“We have an agreement among the families to protect our interests in Ferrari,” Piero Ferrari said following the company’s IPO Wednesday. “We have a very strong understanding.”
Mr. Ferrari, 70, the Vice Chairman of the company, said he has no plan to sell his 10% holding.
John Elkann, 39 anni, Chairman of Fiat Chrysler Automobiles NV (NYSE:FCAU), and head of the Agnelli Family, said he expects to remain Ferrari’s biggest investor.
Exor SpA, the Agnellis’ holding company, will own about 23% of Ferrari after Fiat Chrysler spins off its 80% stake at the beginning of next year.
Thursday, Fiat scheduled an extraordinary shareholders’ meeting on 3 December to approve the separation.
Under Ferrari’s so-called loyalty share plan, stock owners who pledge to retain their stake for at least 3 years receive special shares that increase their voting rights.
That gives the 2 families control of 48.7% of the company, allowing them to fend off any potential bidders.
Last year Fiat Chrysler last year adopted a similar element.
“We definitely look forward to the great ride ahead,” Mr. Elkann said Wednesday on the floor of the New York Stock Exchange after a ceremony marking Ferrari’s debut.
Piero Ferrari inherited his stake from Enzo Ferrari, his father, who founded the Scuderia Ferrari racing team in Y 1929. He produced his 1st racing car in 1947 then converted it to a road car the following year, and sold it to support the Scuderia, a process that continues today.
In Y 1950 Ferrari began to race in Formula One, and has since posted 225 Grand Prix wins and 16 World Championships, making it the motor sport’s most successful team.
Ferrari finished + 6% Wednesday in its 1st day of trading, and finished up 9.13% at 56.75/share Thursday on 4.4-M shares traded giving the company a market value of about $11-B.
Stay tuned…
HeffX-LTN
Paul Ebeling
The post Piero Ferrari Expected To Sign Deal With Agnelli’s To Protect Ferrari (NYSE:RACE) appeared first on Live Trading News.