Fiat is considering a Ferrari IPO and the sale of Magneti Marelli to help fund the Chrysler merger.
Morgan Stanley analyst Stuart Pearson had this to say to his clients, after attending a meeting in Turin:
“We left Turin with the clear message that Fiat and Chrysler will become one company. A Ferrari initial public offering and potential Marelli disposal may need to come first, according to management. ”
While Fiat themselves has declined to comment, they confirmed that a meeting occurred in Turin.
The Chrysler merger is a slow process, with Fiat’s stake currently making up just 20 percent of the company. They plan to grow it to 25 percent by Q1 2011, and 35 percent by the end of next year. A Chrysler IPO is planned in the second half of 2011.