Italy Probes Ferretti Shareholders for Golden Power Rule Violations
Investigation into Ferretti Shareholders and Golden Power Compliance
By Giuseppe Fonte
Background of the Investigation
ROME, May 27 (Reuters) - Italy is investigating whether China-led investors in yacht maker Ferretti breached golden power rules designed to shield strategic assets by not revealing their full shareholding to Italian authorities, three government officials told Reuters.
Role of KKCG Maritime and Shareholder Feud
Czech investor KKCG Maritime this month urged the government to move in the wake of a feud that saw Ferretti shareholders side with China's Weichai Group to end Alberto Galassi's 12-year tenure as CEO, replacing him with Stassi Anastassov.
Galassi's ousting took place at a May 14 shareholder meeting called to decide whether control of Ferretti should remain with Weichai, its largest shareholder, or shift to a slate of appointees backed by KKCG.
Prime Minister's Office and Shareholding Disclosure
Prime Minister Giorgia Meloni's office is checking whether some investors, acting alone or in concert, have bought Ferretti shares or increased their stakes without informing the authorities as required, the sources said, asking not to be named.
Italian Legislation on Strategic Assets
Under Italian legislation, the cabinet office must approve share ownership in any Milan-listed strategic company owning defence or security assets when it crosses thresholds set at 3%, 5%, 10%, 15% and other intervals up to 50%.
Stakeholder Responses and Shareholding Details
Comments from Stassi Anastassov
Asked to comment, Anastassov told Reuters he was focused on managing the business and relations with Ferretti's partners, adding that he was not involved in matters falling within the board's remit.
Bank of China's Stake and Shareholder Disclosure
Italian business newspaper MF reported before the meeting that Bank of China had reached a stake of around 2% in Ferretti.
The yacht maker disclosed all shareholdings exceeding 5% at the May 14 meeting. The minutes detailing the full shareholder base and the relative stakes will be released by Ferretti at a later stage.
Ferretti's Business Structure 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 has said the presence of this division brought Ferretti within the scope of Italy's golden power rules.
Ongoing Hearings and Precedents
Industry Ministry Hearings
The sources said that officials at the industry ministry were conducting initial hearings with unspecified parties involved in the case.
Italy's Approach to Chinese Investments
Italy often imposes curbs on Chinese investments in its companies on security grounds.
The government last month cut the number of board members China's Sinochem can appoint in tyremaker Pirelli to avoid U.S. restrictions on the group's business.
(Reporting by Giuseppe Fonte, editing by Gavin Jones)
