Ferrari drops after Exor announces intent to sell 7M shares

Exor (EXXRF) announces that it intends to sell approximately 7M of the common shares it holds in Ferrari (RACE), representing 4% of the outstanding common shares of Ferrari, by way of an accelerated bookbuild offering to institutional investors. This transaction “will reduce concentration within Exor’s portfolio and allow for a sizeable new acquisition, when such an opportunity present itself, as Exor continues to pursue its purpose of building great companies,” Exor said in a statement. In addition, Exor intends to use a portion of the proceeds from this transaction to launch a new share buyback program for EUR 1B. Shares of Ferrari are down 5% to $480.10 following the announcement.