Abu Dhabi Group Buys Stake in Ferrari

Rome July 27, 2005; The AP reported that the Italian investment bank Mediobanca SpA said Wednesday it has agreed to sell 5 percent of luxury sports carmaker Ferrari SpA to Abu Dhabi's Mubadala Development Co.

Mubadala, an investment group controlled by the government of the Abu Dhabi emirate, will acquire the stake for 114 million euros ($137 million), Mediobanca said.

The Italian bank said the sale is part of its agenda of gradually selling off its Ferrari stake. The deal received the consent of carmaker Fiat, which controls Ferrari, the statement said.

In 2002, Mediobanca bought 34 percent of Ferrari from Fiat, which still owns 56 percent and has an option to buy back the stake. The bank later sold part of its stake to Commerzbank AG and Banca Popolare dell'Emilia Romagna Scarl.

Mediobanca said it has offered those two banks the chance to participate proportionally in the sale to Mubadala.

The deal values Ferrari at the same level as Mediobanca paid three years ago.