Fiat Chrysler And Ferrari Update Investors On Seperation

Fiat Chrysler Automobiles NV FCAU released a letter to shareholders on Tuesday which contained an update to its planned separation of Ferrari NV RACE. According to Fiat Chrysler, the separation will be conducted through a series of transactions that will take place between January 1, 2016 and January 3, 2016. As part of the separation, Fiat Chrysler investors will receive one common share of Ferrari's stock for every 10 common shares of Fiat Chrysler they own. \ Following the successful seperation, Fiat Chrysler's current approximate 80 percent stake in Ferarri will be distributed to its shareholders and mandatory convertible securities. Fiat Chrysler added that its shareholders will also receive a cash payment of 0.01 euros for each share hold. Finally, Fiat Chrysler noted that its common shares will begin trading "ex" Ferrari on January 5 on both the New York Stock Exchange and the Italian stock exchange, Borsa Italiana. Ferrari's common stock will continue trading under the RACE ticker symbol. Fiat Chrysler's stock was trading lower by nearly 2 percent at $13.70 Tuesday morning while Ferrari's stock gained 1.69 percent, trading at $48.20.