Eicher Motors to make US$ 2 billion bid for Ducati

TusharK · 8th September 2017, 19:48

Eicher Motors is reportedly preparing to make a US$ 1.8-2 billion bid for Ducati. The Indian automaker and owner of the Royal Enfield brand, is the only Indian company left in the race to acquire the Italian superbike brand. According to a media report, it is currently finalizing the financing options with banks and consulting firms.

Eicher Motors to make US$ 2 billion bid for Ducati-ducati.jpg

The Volkswagen Group owns the Ducati brand while Audi controls it. It was put on sale following the emissions scandal. The German company has been working closely with Evercore - a boutique investment bank and has valued the motorcycle brand at 1.5 billion euros. The funds from the sale will be used for a complete strategic overhaul at Volkswagen, the report adds.

Last month, it was reported that a 20-member supervisory board comprising of Volkswagen's labour leaders had blocked the management board's decision to sell Ducati. Majority stakeholders were also reluctant to give their approval for the sale. Earlier, the VW Group had announced shortlisted bidders but Eicher Motors and Bajaj Auto Ltd hadn't made the final list.

Source: Economic Times

Link to Team-BHP News

Red Liner · 8th September 2017, 20:49

So if shareholders have blocked any sale, and Eicher didn't make it to the shortlist, why are they even preparing a deal? The article is completely self contradictory.

abhishek46 · 9th September 2017, 12:31

The inevitable will happen, and Ducati will be sold.
If not now, 6 months later it will be again on sale.

Eicher is simply preparing itself from now, for the inevitability.

In scenarios like this, the shareholders always look for the Highest Bidder, and terms of the takeover, rather than Nationality & Prestige. So much for German Prestige, we all know what face they have now, after the Emissions Scandal.

GTO · 11th September 2017, 12:50

Quote:

Originally Posted by Red Liner

So if shareholders have blocked any sale, and Eicher didn't make it to the shortlist, why are they even preparing a deal?

The board has Labour Union presence, and they'd prefer ownership by a labour-friendly company in Germany than any foreigner.

Still, worth a bid if you really want something. As we've seen ample number of times before, big money can change the minds of shareholders & that's what Eicher might be trying to do with this bid.

8th September 2017, 19:48	#1
TusharK Senior - BHPian Join Date: Jul 2017 Location: Pune Posts: 6,262 Thanked: 55,786 Times	Eicher Motors to make US$ 2 billion bid for Ducati Eicher Motors is reportedly preparing to make a US$ 1.8-2 billion bid for Ducati. The Indian automaker and owner of the Royal Enfield brand, is the only Indian company left in the race to acquire the Italian superbike brand. According to a media report, it is currently finalizing the financing options with banks and consulting firms. The Volkswagen Group owns the Ducati brand while Audi controls it. It was put on sale following the emissions scandal. The German company has been working closely with Evercore - a boutique investment bank and has valued the motorcycle brand at 1.5 billion euros. The funds from the sale will be used for a complete strategic overhaul at Volkswagen, the report adds. Last month, it was reported that a 20-member supervisory board comprising of Volkswagen's labour leaders had blocked the management board's decision to sell Ducati. Majority stakeholders were also reluctant to give their approval for the sale. Earlier, the VW Group had announced shortlisted bidders but Eicher Motors and Bajaj Auto Ltd hadn't made the final list. Source: Economic Times Link to Team-BHP News
	(3) Thanks

8th September 2017, 20:49	#2
Red Liner Distinguished - BHPian Join Date: Aug 2006 Location: Bangalore Posts: 5,209 Thanked: 18,044 Times	So if shareholders have blocked any sale, and Eicher didn't make it to the shortlist, why are they even preparing a deal? The article is completely self contradictory.
	(1) Thanks

9th September 2017, 12:31	#3
abhishek46 Senior - BHPian Join Date: Oct 2010 Location: Bangalore Posts: 1,813 Thanked: 5,864 Times	Re: Eicher Motors to make US$ 2 billion bid for Ducati The inevitable will happen, and Ducati will be sold. If not now, 6 months later it will be again on sale. Eicher is simply preparing itself from now, for the inevitability. In scenarios like this, the shareholders always look for the Highest Bidder, and terms of the takeover, rather than Nationality & Prestige. So much for German Prestige, we all know what face they have now, after the Emissions Scandal.
	(3) Thanks