Fiat chief executive Sergio Marchionne told bankers pushing him to pursue an initial public offering (IPO) of Ferrari that the unit might be worth more than e5 billion (R50bn).

“I’ve always viewed Ferrari as a sacred brand, and sacred brands are peculiar,” Marchionne said yesterday. “I know I can float Ferrari any time, but there’s nothing on my desk.”

Ferrari, which will soon deliver its first family car, the $359 000 (R2.4bn) four-seat FF, is Fiat’s most profitable unit. The sports-car maker’s earnings before interest and tax rose 23 percent last year to e302 million on revenue of e1.92bn.

Marchionne’s valuation of Ferrari is e2bn more than that of analysts and 63 percent of Fiat’s entire market value of e8bn. In addition to Fiat brand cars, the firm owns a 30 percent stake in Chrysler, as well as the Maserati, Alfa Romeo and Lancia brands.

Bankers are pitching Marchionne, who has ordered a white FF, to list the unit to reduce debt and improve Fiat’s credit rating. Standard & Poor’s (S&P) lowered its rating on the Italian car maker to BB from the already junk ranking of BB+ in February, after Fiat spun off the industrial operations from the car business.

S&P said at the time that it might downgrade Fiat again if it bought a majority stake in Chrysler this year.

Marchionne, who also runs Chrysler, said he had no immediate plan to list Ferrari as Fiat had enough cash to increase its holding in the US car maker.

“It’s difficult to give a valuation of sacred brands like Ferrari,” he said. “There are days when I think more than e5bn.”.

Marchionne said last November that he might sell assets, including a stake in the car maker, if he needed cash ahead of a full Chrysler merger. Fiat had e12.2bn in cash and cash equivalents at the end of 2010, and net industrial debt of e542m. – Bloomberg