Almost 70 years after Enzo Ferrari rolled out his first sports car, Ferrari is set to again be family-controlled after Fiat Chrysler Automobiles spins off the company this year.
While public shareholders will own most of the shares, John Elkann and other descendants of Fiat founder Giovanni Agnelli, together with the son of Ferrari's founder, probably will control 51 per cent of the votes at an independent Ferrari.
That is because the company is likely to follow Fiat Chrysler's lead and set up a so-called loyalty share plan, which would give the family extra votes if it agrees to hold the stock for a set amount of time. Ferrari will be one of the only independent ultra-luxury carmakers, and the shareholder setup will allow the Agnellis to fend off potential bidders.
"With a loyalty plan, the Agnellis want to make sure Ferrari can't become a takeover target," said Giuseppe Berta, a Fiat expert at Bocconi University.
Under a loyalty plan, Exor, the Agnelli family's holding company, could end up with 36 per cent of the votes and Piero Ferrari could get 15 per cent if no other shareholders participate.
Advocates of loyalty share-voting plans say the arrangements encourage long-term corporate thinking. Some investors and academics decry them as a way for family owners to retain control long after giving up majority ownership.