Fiat buys back Mubadala's Ferrari stake

 An Abu Dhabi state investment company said it will sell back its 5 per cent stake in Ferrari but hopes to continue working with the high-powered Italian automaker.

Mubadala Development Company confirmed the plans in a statement Sunday as the season-ending Abu Dhabi Grand Prix was getting under way in the Emirati capital.

The investment firm said Ferrari's parent Fiat exercised an option that gave it the right to buy back the stake Mubadala acquired in 2005. It says it is in discussions to complete the transaction.

Mubadala did not provide financial details. But Fiat's third-quarter results released last month show the deal cost it euro 122 million ($167m).