Ferrari completes spinoff with stock listing in Milan

For the parallel Milan listing, Fiat Chrysler distributed its remaining 80 per cent to its shareholders, at a rate of one common share of Ferrari for every 10 shares of Fiat Chrysler.

The Wall Street Journal suggests that it might also be easier for him to find a company to merge Fiat with, noting that he has said a couple of times that a deal might be easier to come by after the spinoff of Ferrari because interested automakers would find it easier to place a fair value on Fiat Chrysler. Equities research analysts anticipate that Fiat Chrysler Automobiles NV will post $0.71 earnings per share for the current year. Ferrari, which was listed on the New York Stock Exchange in October, starts trading on Monday in Milan as well.

Ferrari is the only race-car maker that has continuously participated in Formula 1 racing since the beginning.

But it will now have to make do without the fat profits of the luxury unit that contributed 12 percent of FCA earnings in 2014.

Ferrari common shares have been approved for listing and were expected to commence trading on the Mercato Telematico Azionario (MTA) today under the RACE ticker symbol and the ISIN code NL0011585146.

Marchionne confirmed FCA’s targets to 2018, centred around a revamp of its Alfa Romeo, Jeep and Maserati brands.

Mr. Marchionne wants to value Ferrari as the luxury brands such as Burberry, Hermes, and Tiffany.

Trading on the Italian bourse, the shares were nearly flat at lunchtime, having opened at €43 – indicating that Ferrari was worth €8.1bn (£6bn). Marchionne called the development a “new threshold, a new starting line” for the prestigious brand. About 5.33 million shares of Fiat Chrysler were traded by this afternoon, compared to its average volume of 368,418 shares per day.

The company also recently disclosed a special dividend, which will be paid on Wednesday, January 13th.

Under the agreement, if Mr. Ferrari chose to sell his stake to a third party, Exor has the right to buy his shares at the price, which he might receive from a potential buyer.

“If you put a Ferrari sticker on a toaster it doesn’t go faster”, said Marchionne.

However, Mr Machionne said Ferrari’s split from its parent gave it the green light for a new range of cars. Piero Ferrari, the son of founder Enzo Ferrari, owns the last 10 percent.