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Why the Ferrari IPO was the beginning of the end.

Discussion in 'Ferrari Discussion (not model specific)' started by jjmalez, Sep 5, 2019.

  1. Ski Bum

    Ski Bum Formula 3
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    Jun 19, 2012
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    The Ferrari (RACE) IPO was a leveraged spinoff in which more than $2 billion of debt incurred by Fiat (which kept the cash proceeds of the debt issuance) was allocated to Ferrari. This was part of the way that Fiat raised cash from the transaction. As a result, Ferrari has been paying interest on the debt since the spinoff, and must ultimately repay it or refinance it. This leaves less money for racing and product development. It is difficult to know how this compares to the dividends that Ferrari was paying to Fiat before the spinoff.
     
    paulchua, jjmalez and pilotoCS like this.
  2. jjmalez

    jjmalez F1 Rookie
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    Apr 8, 2005
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    "proper performance cars that also look sexy"

    Please point out which of the Lamborghini, Maserati or Bentley SUV's you think looks sexy.

    That is where Ferrari is heading.
     
  3. paulchua

    paulchua Cat Herder
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    Jul 1, 2013
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    Paul Chua
    very good point!
     
  4. paulchua

    paulchua Cat Herder
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    An interview asked his son his dad would have thought about Electric? Pierro said Enzo would have loved it. True, Pierro may have lied, but I think he wasn't. The video of the interview is somewhere here.
     

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