Ferrari Shareholders Move to Fend Off Unwanted Suitors
Ferrari is about to be spun off from Fiat Chrysler Automobiles, so major Ferrari shareholders are taking action to protect their company. Its two largest investors have signed a shareholders' pact that will protect it from any unwanted suitors. According to The Wall Street Journal, the two groups involved are Exor SpA, an Agnelli family holding company, and Piero Ferrari who is the son of the company's founder. Their agreement takes effect in early January after the spinoff. This will mark the end of 30 years during which Chrysler has had exclusive control of Ferrari. RELATED: Watch Video of a House Built Around a Ferrari
The two groups announced their intent to sign such an aggreement previously, but they hadn't released any details. Signing the pact means that Exor and Piero Ferrari will discuss what to do ahead of any shareholder meetings so that they're in aggreement about the company's direction. It goes beyond discussing plans for the future and also includes stipulations about how their stock may be sold.
If Piero decides he wants to sell his stock, then Exor gets first dibs. They will have the right to buy any stock Piero chooses to sell at the same price it would sell at to any other buyer. Piero also has the right to buy any Ferrari stock Exor chooses to sell, but they can reject or accept his offer. The pact runs for five years and will automatically renew unless one of the parties terminates the agreement.
RELATED: Watch a Ferrari 288 GTO Shoot Flames