Fiat Chrysler Automobiles has stalled the planned initial public offering of its Ferrari division.
The company is waiting until mid-October or later before initiating the selloff, FCA chief executive Sergio Marchionne told The Wall Street Journal, citing “technical reasons” associated with the finalization of the Fiat-Chrysler merger.
The company is waiting until mid-October or later before initiating the selloff, FCA chief executive Sergio Marchionne told The Wall Street Journal, citing “technical reasons” associated with the finalization of the Fiat-Chrysler merger.
The executive claims to have been advised by attorneys that a full year must separate the merger, which officially occurred on October 12, 2014, and the Ferrari divestment.
Marchionne also dismissed speculation suggesting the company might be delaying the Ferrari plans as it looks to find a partner for a broader merger. Recent reports suggest the merger push may have been associated with product-development delays that are said to affect several models.
FCA will sell 10 percent of Ferrari in the IPO, while the other 80-percent stake will be distributed to shareholders. It is unclear if the company is planning to time the IPO for October of this year, or if the sale will be further delayed.
Image by Ronan Glon.
Leave a Reply