Ferretti Adviser Deems KKCG Stake Offer Unattractive
Ferretti advisers and the board recommended rejecting KKCG's 182 million euro bid to double its stake. They cited concerns over future strategy and management.
Ferretti S.p.A. has announced that an independent financial adviser and its board committee have rejected a proposal from the Czech Republic-based KKCG Group to double its stake in the company. The luxury yacht manufacturer, which is based in Italy, recommended that independent shareholders decline the offer, which was valued at approximately 182 million euros ($209.8 million). The bid was intended to increase KKCG's 14.5% holding and push for changes to the board currently controlled by a major shareholder in China. Ferretti warned that such a shift could lead to strategic instability. > "In particular, a duopoly of significant shareholding of Ferretti International Holding (FIH) and KKCG Group, but neither holds a majority shareholding, may give rise to significant uncertainty in relation to the company's long-term business strategy and operational management." The company also noted that KKCG has failed to discuss its board renewal plans with current directors, further complicating the firm's outlook.
