Fiat Chrysler’s stock surges on report of Maserati spinoff


Shares of Fiat Chrysler jumped more than 5 percent Wednesday after a report said the Italian-American automaker is considering spinning off some of its upscale brands.

The company may spin off Maserati and Alfa Romeo as Fiat Chrysler seeks to streamline its business, Bloomberg News reported, citing sources close to the parent company. It said the two luxury brands have an estimated combined worth of as much as $8.3 billion.

According to Bloomberg, sources close to Fiat Chrysler believe the company hopes to make itself more attractive for merging with a competitor.

Fiat Chrysler did not immediately reply to a CNBC request for comment. It is also considering separating from some of its parts business, Bloomberg said.

The report comes amid speculation that China’s Great Wall Motor was speaking to Fiat Chrysler about purchasing its Jeep brand, which the multinational automaker denied on Monday. Before Fiat Chrysler’s denial, a Great Wall Motor official said the Chinese company was interested in bidding for all or part of Fiat Chrysler.

Fiat Chrysler spun off former crown jewel Ferrari on Jan. 4, 2016, after it took the supercar builder public on Oct. 21 of the previous year.

Ferrari stock since Jan. 4, 2016

Source: FactSet

Ferrari has been a stellar performer since its IPO, when it began trading at $60 per share. Ferrari’s stock hit an all time high of $116.05 on Wednesday.

Read more from Bloomberg here.

Source link

Products You May Like

Articles You May Like

IBM earnings Q1 2021
Social Security reform could move ahead after TRUST Act is introduced
What are the most overrated places to travel? Travel writers share all
Will there be a fourth stimulus check? what we know so far
Lesson from Jeff Bezos’ last letter as Amazon CEO: Don’t be ‘typical’

Leave a Reply

Your email address will not be published. Required fields are marked *