Starbucks and Fiat Chrysler face multimillion-euro repayments after EU tax … – The Guardian (blog)

Posted: Wednesday, October 21, 2015

While the appeal of owning a piece of such a marque or luxury brand has its obvious attractions, which explains why the IPO is oversubscribed, one can’t help feeling what the advantages of owning the shares would be to a potential investor? Trading as it does at 33 times earnings the valuation seems rather high, given that car sales volumes are limited by exclusivity, unless there are certain privileges involved in being a shareholder like VIP access to the F1 paddock perhaps?

When one thinks of luxury marque brands the names of Rolls Royce Cars, Bentley, Bugatti, Lamborghini, Maybach and Aston Martin all trip off the tongue and all of these are subsidiaries of major car companies, BMW, Volkswagen Audi, Daimler and Ford, where the brand doesn’t have to necessarily stand on its own two feet.

Even so one can’t help feeling that Fiat are surely missing a trick in not having a dual listing in Europe, particularly given how fanatical the “tifosi” are about the “Prancing Horse” brand.

One company that might be more than an interested party in the success of this particular IPO is Volkswagen. If their problems get any worse they could find themselves having to do something similar to Fiat and look at potentially offloading Bentley, Bugatti or Lamborghini, particularly if the Ferrari float goes well.

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