Chain-smoking, diet raspberry iced tea sipping Marchionne values Ferrari at $7.3 billion

Ferrari FF
Ferrari FF

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

Source: Bloomberg