Fiat SpA CEO Sergio Marchionne has told bankers trying to persuade him to pursue an initial public offering of Ferrari that the brand is worth more than 5 billion euros ($7.3 billion)
“I’ve always viewed Ferrari as a sacred brand, and sacred brands are peculiar,” Marchionne said in an interview at Fiat’s headquarters in Turin, Italy. “I know I can float Ferrari any time, but there’s nothing on my desk.”
Ferrari is Fiat’s most profitable brand – the supercar maker earnings before interest and taxes increased 23 percent in 2010 to 302 million euros on a revenue of 1.9 billion euros.
Marchionne’s valuation of Ferrari doesn’t match up with that of analysts who say the brand is work 3 billion euros.
“It’s difficult to give a valuation of sacred brands like Ferrari,” Marchionne said. “There are days when I think more than 5 billion euros.”
Apparently, Marchionne was chain-smoking Muratti cigarettes and sipping on diet raspberry iced tea during the interview.
– By: Omar Rana