• Most Popular
  • Most Shared

UPDATE 1-Ferrari's son to buy stake in Pininfarina

Tue Apr 29, 2008 12:40pm EDT

Stocks

   

(Adds Marsiaj family name, background)

MILAN, April 29 (Reuters) - Pininfarina (PNNI.MI) said on Tuesday the son of the founder of sports car maker Ferrari (FIA.MI) will be among key figures buying shares in the car designer and contract manufacturer as it seeks to raise capital.

Piero Ferrari will be one of three prominent figures of the Italian automotive industry who will be taking stakes, a spokesman said.

The others are Alberto Bombassei, chairman of braking systems maker Brembo (BRBI.MI) and the Marsiaj family, founders of seatbelt maker Sabelt, he said.

Bombassei had hinted at his participation in the capital increase when speaking to reporters at a corporate event on Monday.

Pininfarina wants to raise 100 million euros through a capital increase by the middle of the year to finance a restructuring plan to revive its struggling business.

Chief Executive Andrea Pininfarina disclosed the names of those planning to take part at the company's annual shareholders meeting at its offices near the industrial city of Turin in northern Italy, the spokesman said.

The three Italian names were the last ones that had been awaited by the market after French financier Vincent Bollore and Indian industrialist Ratan Tata confirmed their participation.

Pininfarina will use part of the proceeds to pay for an electric car that it is developing with Bollore. The car is a pivotal part of Pininfarina's restructuring.

Pininfarina's founding family of the same name has a 55 percent stake, but it is prepared to reduce it to allow these investors to enter the company. It will still keep a controlling stake of more than 30 percent. (Reporting by Gilles Castonguay; editing by Elaine Hardcastle)



More from Reuters

Photo

Honda expands airbag recall as more Toyotas probed

TOKYO/DETROIT (Reuters) - Honda Motor Co said it would recall another 440,000 cars around the world for faulty airbags as rival Toyota Motor Corp faced further probes over its largest-ever safety crisis. | Video

A worker walks on steel frames at a construction site in central Beijing January 27, 2010. REUTERS/Loic Hofstedt
Analysis:

China's boom may lead to bust

The housing market is becoming the investment of choice for the Chinese, which is making policymakers very nervous.  Full Article