Ducati to be sold again...
Timing being everything, InvestIndustrial bought Ducati from TPG at a knock down price just as its world was turning around. I bet there's some table banging and pencil snapping going on at TPG today...
Ducati's Top Investors Plan EU390 Million Acquisition (Update1)
2008-02-19 11:06 (New York)
By Marco Bertacche
Feb. 19 (Bloomberg) -- Investindustrial SpA and BS Investimenti, two Italian private-equity firms, plan with a partner to bid as much as 390 million euros ($576 million) for full control of motorcycle maker Ducati Motor Holding SpA.
The funds and Hospital of Ontario Pension Plan, which together own almost 30 percent of Ducati, will offer 1.70 euros a share for the rest of the Bologna, Italy-based manufacturer, the investors said in a statement today.
Ducati shares rose as much as 28 cents, or 20 percent, to 1.68 euros and were up 19 percent as of 4:47 p.m. in Milan after being suspended from trading earlier today pending the announcement. The offer is 22 percent more than yesterday's closing price.
The bid is conditional on the investors gaining control of two thirds of Ducati's capital, and half of the acquisition will be financed by Intesa Sanpaolo SpA, the investors said. The funds said they plan to de-list Ducati's shares following recent volatility in equity markets.
Investindustrial and its partners agreed in December 2005 to buy their controlling stake in Ducati from Texas Pacific Group, now known as TPG Inc. The investors appointed a new chief executive officer last May. Ducati shares have fallen 37 percent since reaching a seven-year high on July 23.
Ducati, the winner of last year's MotoGP motorcycle world title, is targeting annual sales growth of 10 percent by adding more profitable models and boosting revenue from merchandising.
The maker of high-performance motorcycles posted net income of 13.3 million euros in 2007, its first full-year profit after three years of losses.
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