IN
THE
WIND
P40
owns a stake in Ski-Doo snow-
mobiles maker BRB, has also
been touted as a potential buyer.
But Ducati's savior could be
coming from central Asia. The
booming Indian motorcycle mar-
ket has produced two possible
candidates for Ducati in Bajaj Auto
and Eicher Motors. Bajaj owns
47 percent of KTM and produces
small capacity motorcycles, scoot-
ers and rickshaws for the Indian
market, while Eicher Motors owns
one of the oldest motorcycle
manufacturers in the world—Royal
Enfield—with production begin-
ning way back in 1893.
"We are very close to final-
izing a very promising alliance;
it's not certain that it will happen,
but if it happens, it will open up
enormous possibilities for the
company," Bajaj Auto MD Rajiv
Bajaj said while addressing
shareholders at the 10th an-
nual general meeting. "That is
why we keep our money (cash
on books) with us, so once in
a while, when an opportunity
comes along, we are ready."
Bajaj's books are very healthy,
with the Economic Times report-
ing the company has Rs 13,250
crore of free cash, translating to
around $13 billion, which is plen-
ty for the purchase of Ducati.
Chinese concern Loncin
Motor initially showed interest
in Ducati, however, they have
remained quiet on the subject
for some months.
One person who could mount
a spirited charge for Ducati is
former owner, Andrea Bonomi,
founder of the Italian private
equity fund Investindustrial.
Bonomi sold Ducati to Volkswa-
gen back in 2012 for a reported
$860 million, and is serious
about taking the reins once
again, according to Reuters.
There are other private eq-
uity funds interested in Ducati,
namely CVC Capital Partners—
the former owners of Formula
One, having recently sold their
interest to American's Liberty
Media Corporation.
Any sale of Ducati, however,
would require the go-ahead from
Volkswagen's influential labor
unions, who control half of the
20 seats on the VW supervisory
board. According to Reuters,
these unions are vehemently op-
posed to any sale of the Ducati
brand—so even the just the sale,
let alone who will get Ducati—is
still very much in the air. CN
There is no shortage
of companies looking
to purchase Ducati
from the embattled
Volkswagen Group.
