Italy Considers Golden Power Scrutiny After KKCG Flags Ferretti Investor Moves
Government Review of Ferretti Shareholder Dispute and Golden Power Rules
MILAN, May 15 (Reuters) - The Italian government is assessing a request by Czech investor KKCG Maritime to check whether investors in yacht maker Ferretti have breached golden power rules designed to shield strategic assets, Industry Minister Adolfo Urso said on Friday.
Government Response and Ongoing Assessment
"A request has been received and is currently being considered by the relevant departments" at the defence and industry ministries, Urso said, adding that officials were working quickly.
Ferretti Shareholder Feud and Board Changes
The request comes a day after shareholders in Ferretti sided with China's Weichai Group in a shareholder feud, ending CEO Alberto Galassi's 12-year tenure as they named a new board. The meeting had been called to decide whether control of Ferretti should remain with Weichai, its largest shareholder, or shift to a slate of appointees backed by KKCG.
KKCG's Challenge and Appeal
KKCG, which led the challenge to Weichai, appealed the validity of Thursday's decision. It said it had notified the government of possible breaches of Italy's "golden power" rules, which give Rome the right to veto or set conditions on corporate deals involving companies deemed strategic to national security.
Ferretti's Strategic Assets and Security Division
Ferretti controls seven different yacht brands, including Riva and Wally, and also has a small security division producing patrol vessels, which the company has deemed non-core and sought to sell.
KKCG's Statement on Golden Power Applicability
In a statement on Thursday, KKCG reiterated that the presence of such a division brought Ferretti within the scope of the country's golden power rules.
Concerns Over Chinese Investor Shareholdings
KKCG wants the government to check whether multiple Chinese investors have acquired shareholdings in Ferretti under a concerted action.
Reporting and Editorial Credits
(Reporting by Elvira Pollina, writing by Giuseppe Fonte; Editing by Alvise Armellini and Emelia Sithole-Matarise)
