FCA to Spin Off Ferrari

Fiat Chrysler Automobiles NV is expected to raise about €910 million by selling 10% of its legendary Ferrari SpA unit in the form of a share sale.

The company will list 10% of its stake in Ferrari for public purchase in New York City and perhaps a European exchange. FCA will distribute the remaining 90% to its own investors.

FCA's board made the decision on Wednesday as it held its first meeting to discuss financing the company's €48 billion expansion plan through 2018.

"It is proper that we pursue separate paths for FCA and Ferrari" as FCA seeks to dramatically hike sales, revenue and pretax earnings, says CEO Sergio Marchionne.

Analysts describe the Ferrari deal as an effective way to bolster investor interest in FCA's plan to issue €2 billion in convertible bonds and sell as many as 100 million of its own shares. Most of those shares represent equity FCA bought back from Fiat shareholders who opted not to convert their holdings to FCA stock.