Fiat Chrysler To Spin-Off Ferrari, Stock Soars 15%

Fiat Chrysler Automobiles NV FCAU announced the spin-off of Ferrari S.p.A. on Wednesday.

According to the press release, “the separation will be effected through a public offering of FCA's interest in Ferrari equal to 10 percent of Ferrari's outstanding shares and a distribution of FCA's remaining Ferrari shares to FCA shareholders.”

“As we move forward to secure the 2014-2018 Business Plan and work toward maximizing the value of our businesses to our shareholders, it is proper that we pursue separate paths for FCA and Ferrari," according to FCA CEO Sergio Marchionne.

"I am delighted to have taken this additional step in the development of FCA. Coupled with the recent listing of FCA shares on the NYSE, the separation of Ferrari will preserve the cherished Italian heritage and unique position of the Ferrari business and allow FCA shareholders to continue to benefit from the substantial value inherent in this business," said John Elkann, Chairman of FCA.

Fiat Chrysler Automobiles NV traded at $11.17, up 14.92 percent.