Agree. The name Ferrari is worth 80% of the deal alone. Luxury brands are maybe around 13 P/E in these depressed times, but around 20 - 30 in happy stock market times. I think it would be a bad chosen moment by Fiat to sell Ferrari in these depressed (investors perspective) times. If Ferrari would be sold in high fly times it could produce a 25 P/E sell prices = 10-12 Bio. By the way, it would not be the first time Piech is overpaying for a luxury brand !
But the real problem seems to be somewere else. It was noticable how much problems the bigger italian bank have these days to get better capitalized. They are in strong need to "shorten" their balance sheets. Maybe they are trying to force Fiat into this "creative thinking" of selling the Ferrari name.
After all, I personally believe that Ferrari will stay with Fiat or Fiat will sell only a part of their Ferrari shares to Kuwait, Quatar or Saudi interested parties (parties which have the cash and a pretty quiet). Just my 2 cents.
Looking from the outside in - Ferrari is a mess and earnings flat out suck.
Fiat's debut in the US was horrific - they fired the top brass last week. Fiat Marketer in North America Departs - WSJ.com
If my return was equal in percentage to Fiat I would be having cash calls as would almost any other business I am familiar with.
Saudi money while quiet is non recourse money. They aren't going to sign anything further than what they give that day.
Interesting about the Italian Banks - my guess is they are all playing hide the weenie - numbers are all over the place and the fact that Pinafarina went down speaks volumes.
Italy can not afford to play games - hide the weenie cook the books give us a high speed rail contract ... all falling on deaf ears and I would bet things are a lot worse than they appear.
Too many mouths to feed under the umbrella - VW would rip it to profitability.
Last note - these times may be the best for Ferrari ... they can get out now and rebuild.
P/E ... may be single digits before they see double digits - regardless game clock is running out.