JUNE 28, 2002
Fiat sells 34% of Ferrari to Mediobanca
AS we predicted yesterday, Fiat has sold 34 percent of Ferrari to investment bank Mediobanca. The move comes after months of rumors that Fiat would float the company on the Milan exchange, but the Italian conglomerate decided to sell a portion of the company to Mediobanca because of fears that the market would not respond well to an IPO at the moment.
Mediobanca is expected to float the shares later this year, but will have the luxury of waiting for the right moment. The sale raised $767.4 million, and will allow the struggling Fiat to pay some of its enormous debt.