💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Fiat mulls Ferrari IPO, Marelli sale - analysts

Published 11/15/2010, 09:44 AM
Updated 11/15/2010, 09:48 AM

* CEO met several analysts last week, talked about strategy

* IPO, disposal would come before getting 51 percent of Chrysler

* CEO told analysts VW wants to buy Alfa Romeo

* Fiat shares up 3 percent vs sector rise of 2.2 percent

MILAN, Nov 15 (Reuters) - Italian carmaker Fiat is considering a listing of sportscar maker Ferrari and a sale of equipment manufacturer Marelli before getting a majority stake in U.S. maker Chrysler, analysts said on Monday, lifting shares.

Fiat owns 20 percent of Chrysler and is planning to increase its holding to 35 percent once it meets restructuring goals. It also has an option to grow it to 51 percent.

Analysts who met Chief Executive Sergio Marchionne last week said he was planning for one joint listed car unit ahead of 2014. "We left Turin with the clear message that Fiat and Chrysler will become one company," Morgan Stanley said in a research note as it added the stock to its "best ideas" list.

"However, a Ferrari IPO and potentially Marelli disposal, may need to come first according to management," Morgan Stanley said after a meeting with Fiat Chief Executive Officer Sergio Marchionne.

Analysts at Deutsche Bank and UBS who had also met Marchionne also talked about these plans in their client notes.

Fiat declined to comment on the analyst meetings.

"There was a meeting with a number of analysts and it was quite positive," said a Milan-based broker, asked what was moving the shares.

Shares in Fiat were up 3 percent at 1424 GMT, outperforming a 2.2 percent rise in the STOXX 600 index of European car manufacturers.

According to analysts, Marchionne also said that Europe remained a headache operationally, but saw upside in Brazil and was confident in incremental volume from Chrysler at Fiat's Italian factories.

Morgan Stanley wrote that German rival Volkswagen was looking to buy its Alfa Romeo brand, but that the division was on sale only at a very high price.

Several brokers put out a note on Fiat on Monday. Royal Bank of Scotland lifted its target price for the carmaker to 15 euros from 13 euros previously and kept its buy.

Newspaper Corriere della Sera reported at the end of October Italy's No.1 industrial group was considering a partial listing of Ferrari. Fiat had at the time denied the report. (Writing by Lisa Jucca, additional reporting by Nigel Tutt; Editing by Jon Loades-Carter)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.