4.10.06

This article was written by Ivar Simensen and first appeared on The Financial Times website

Fiat, the Italian carmaker, has raised its holding in Ferrari to 85 per cent after exercising an option to buy back a 28.6 per cent stake in the iconic sports car maker.

Commerzbank, the German bank, said yesterday it had sold its 8.4 per cent stake in Ferrari to Fiat. The transaction was part of a deal with a group of banks led by Mediobanca of Italy, last week, to buy back a 28.6 per cent stake in Ferrari.

Fiat said it would pay €892m ($1.14bn) in cash for the stake, valuing Ferrari at €3.1bn and underlining the Turin-based carmaker's improved financial situation as well as its efforts to boost its core automotive business.

Fiat sold a 34 per cent stake in Ferrari to banks when the company was in financial distress in 2002.

Commerzbank said the disposal followed the bank's strategy of shedding non-core assets. Ferrari's other shareholders are Mubadala Development Company, with a 5 per cent stake, and members of the Ferrari family, who control 10 per cent.

The news came as Ferrari's Michael Schumacher went top of the Formula One championship with two races to go, after winning the Chinese Grand Prix at Shanghai