Abu Dhabi Government Buys Stake in Ferrari

[BMWDave]

Abu Dhabi Government Buys Stake in Ferrari
Date Posted 07-29-2005

ROME ? An Italian investment bank said Wednesday it has agreed to sell 5 percent of luxury sports carmaker Ferrari to an investment group controlled by the government of Abu Dhabi.

Mubadala, an investment group controlled by Abu Dhabi, the richest and most politically important of the United Arab Emirate's seven principalities, will acquire the stake for 114 million euros or $137 million, said Italy's Mediobanca.

Mediobanca said the sale is part of its plan to gradually sell off its Ferrari stake. The Associated Press reported the deal received the consent of carmaker Fiat, which controls Ferrari.

In 2002, Mediobanca bought 34 percent of Ferrari from Fiat, which still owns 56 percent and has an option to buy back the stake.

What this means to you: A new investor with deep pockets should mean good news for Ferrari fans.