Thursday, July 28, 2005

Ferrari SOLD ?????...

Mediobanca has sold 5% of the Ferrari auto maker to Abu Dhabi government subsidiary, Mubadala Development.
The deal will see Mubadala Development pay €114 million to purchase the 5% stake in the Italian company.
FIAT and Ferrari President Luca di Montezemolo, was pleased about the new deal and looks forward to a strong and prosperous relationship:
"This is the first time that we, Fiat, have welcomed a non-financial institution to become a Ferrari shareholder. The key benefit of extending our shareholder base beyond traditional financial institutions will be a new opportunity for our development.
Moreover, the strategic alliance with Mubadala, and therefore the Government of Abu Dhabi, is set to bring us compelling and dynamic new strategies especially in the Middle East and North African markets. Our initial areas for consideration will range from the creation and development of road and racing car testing initiatives, along with professional driving schools through to the leveraging of opportunities around brand experiences and merchandising."
His Highness Sheikh Hamed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Department of Planning & Economy was also certainly pleased by the move and believes:
"This is a sound financial and strategic investment on numerous levels. It continues our track record of being involved with premier global companies and brands who are the leaders in their fields."
FIAT has been searching for some time for a buyer of some or all of Ferrari. While Mubadala will become a very small shareholder, two possible individuals may take over all together.
Bernard (Bernie) Charles Ecclestone is one of these possible buyers, although his involvement with the team would not only be unpopular, but unproductive. Bernie, as we know is all about the marketing and even more so, the money in Formula 1. Therefore, as a Tifosi, I for one do not want him at the head of my racing team.
The other individual linked with a purchase of Ferrari is Red Bull co-founder, Dietrich Mateschitz. Mateschitz has been involved in Formula 1 since 1994, and recently bought the Jaguar team from Ford. Now, rumours (realistic ones mind you) suggest that Mateschitz wants to become even more involved with Formula 1 by purchasing the sport's most illustrious team. Unlike Ecclestone, Mateschitz would seem to be a much better choice to purchase Ferrari.
While all of this news is important for the team's continued involvement in Formula 1, Tifosi can only hope that it will indeed continue.


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