March 13 (Reuters) - Italian yacht maker Ferretti said on Friday that an independent financial adviser has deemed Czech investment group KKCG's offer to double its stake in the firm "not attractive".
Ferretti adviser calls KKCG's stake-raise offer unattractive
Independent Assessment and Shareholder Recommendations
Adviser's Evaluation of KKCG's Offer
March 13 (Reuters) - Italian yacht maker Ferretti on Friday said an independent financial adviser has called Czech investment group KKCG's offer to double its stake in the firm "not attractive."
Board Committee's Response
In a statement, Ferretti said the independent board committee reviewing the bid agreed with the adviser's assessment and recommended that independent shareholders reject the offer.
Details of KKCG's Bid
In January, KKCG launched an offer worth up to 182 million euros ($209.8 million) to double its 14.5% stake in Ferretti and push for changes to a board appointed by the company's Chinese controlling shareholder.
Concerns Over Shareholding Structure
"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," Ferretti said.
Uncertainty About Company Plans
The company, controlled by state-owned Weichai Group of China, added that, as of Friday, KKCG had not discussed with any of its directors their potential inclusion in its slate for the board renewal, among other issues, creating uncertainty about the company's plans.
Stakeholder Positions and Recent Developments
Weichai Group's Stance
KKCG was seeking changes to a board appointed by Weichai, which manufactures industrial equipment.
Weichai, which is based in eastern China's Shandong province, had said it would not support KKCG's tender offer as it viewed its investment as "long-term and strategic." It owns 38% of the yacht maker.
Board Vote and Other Shareholder Activity
Ferretti CEO Alberto Galassi and Italian directors Stefano Domenicali and Pietro Ferrari, who is also a minority shareholder, abstained from the vote on the resolution to reject the offer.
The rejection came less than a day after U.S. investment firm Biglari Holdings acquired a 3.4% stake in Ferretti.
Market Impact
Ferretti shares were recently down 1.5% in Milan.
($1 = 0.8677 euros)
(Reporting by Shivangi Lahiri in Bengaluru, Kane Wu in Hong Kong and Elisa Anzolin in Milan; Editing by Sumana Nandy and Thomas Derpinghaus)
