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Fiat Chrysler Spinning Off Ferrari Group In 2015 To Dump Debt

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Fiat Chrysler will be spinning off their Ferrari group in order to get rid of $894 million worth of debt burdening the company. In the deal laid out in an SEC filing, Ferrari will pay Fiat Chrysler $2.8 billion in return for the loss of approximately $2.1 billion in Ferrari revenues and Ferrari’s current debt of $167 million.

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In addition to spinning off Ferrari, Fiat Chrysler CEO Sergio Marchionne has said that he will sell 10% of the company in a public offering and distribute the remainder of Fiat Chrysler’s Ferrari’s holdings to its company’s shareholders.

On a side note: Marchionne just bought 1000 shares of Philip Morris International – the main sponsor of Ferrari in Formula One racing and whose main F1 race sponsor executive was recently made team principal at Ferrari.

Fiat Chrysler CEO Sergio Marchionne

Fiat Chrysler CEO Sergio Marchionne

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