Fiat raises stake in Ferrari SpA

Fiat said Friday that it has exercised an option to buy back 28.6 percent of luxury car brand Ferrari Spa for euro892 million (US$1.1 billion), in a move the automaker said was part of its strategy to focus on its core operations. The deal to buy back the shares from a consortium of banks will give the Turin-based automaker 85 percent control of Ferrari. It is being financed with cash, Fiat said in a statement. Fiat sold the stake to the banks to raise much-needed funds at the height of its cash crunch in 2002. The auto division has since returned to profit.

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