MaxMoto News. 07/07/04

This afternoon, Ducati announced that they had made an (undisclosed) offer for a majority share-holding in Aprilia, Moto Guzzi and Laverda.

Up until now, Ducati have been going through only Moto Guzzi's books after declaring an interest a couple of months ago.

Federico Minoli, Ducati Chairman and CEO, said that they intend to keep the brands as they are, using the current production facilities, but consolidate some of the R&D, marketing, distribution, purchasing and administrative functions.

Reduced costs and greater buying power would, of course, be good news for both groups. The combined total would be a far stronger player on the world scene than the sum of the two halves. For Aprilia it would also provide the funding to speed up development of their impending range of supermoto, motocross, enduro, dual purpose and road bikes based around the new 450/550 engine.

The Piaggio group have also made little secret of wanting to consolidate the Italian motorcycle industry, and their board is meeting on 13th July to decide whether to make an alternative bid. Aprilia's new chairman , Candido Fois (Ivan Beggio stood down), is a mate of Piaggio's chairman, Roberto Colaninno, the darling of Italian financial institutions, who in turn is a mate of Italy's PM Berlusconi. So expect a strong challenge.

Others are said to be interested, including the Bombardier group, makers of the Rotax RSV engine.

Ducati's press release:

DUCATI MOTOR HOLDING PRESENTS ITS OFFER FOR THE ACQUISITION OF THE MAJORITY SHARE OF APRILIA Bologna, Italy, July 7, 2004

Ducati Motor Holding S.p.A. (NYSE: DMH, Borsa Italiana S.p.A: DMH), a leading manufacturer of high performance motorcycles, has presented today an offer for the acquisition of the majority share of the Aprilia Group.

This offer intends to solve the recent financial crisis of Aprilia in order to re-establish its role as a leader, built up over years of hard work and successes in the two-wheel market.

This operation is based on the wish to promote the Italian two-wheel industry consolidation. This new group, first of its kind in Europe, would be able to compete successfully at a global level, thanks to the strengths and peculiarities of each single brand, scale economies and the technological excellence resulting from the combination of each company's competencies.

Ours is a long-term industrial project, said Federico Minoli, Ducati Chairman and CEO. We are not financial investors. We are moved by passion and we are dedicated to the success of Italian bikes worldwide. We are conscious that this success depends on respecting and enhancing the different identities of each single brand, each one directly linked with its products, its history and its territory, where manufacturing sites have to be kept.

Technological competencies, the real asset of each company, could be better used in an integrated and coherent development plan that avoids duplication, and that concentrates its investment efforts on technology and innovation. All together these companies will have a great market penetration force, in particular abroad, realizing in the meantime important synergies in sales structures and distribution channels, as well as in purchasing and administrative structures. Our Ducati turn-around experience leaves us confident of the possibility of success and conscious of the responsibilities we are assuming versus an industry sector that has always proudly brought the Italian geniality and passion for the two-wheel industry to the world.

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