Ducati to be Sold

[Travman]

A newly created investment group composed of Ducati's three largest shareholdersâ€"Investindustrial, BS Investimenti and Hospitals of Ontario Pension Plan (HOPP)â€"would purchase the 70 percent of publicly traded stock that they don't already own for about $579 million. The stock purchase would cause publicly held Ducati (stock ticker: DMH) to be delisted from public trading and become 100 percent privately held. The plan should be approved by Ducati's board in September and has already been approved by Italy's regulatory bodies.

Here is the complete article:
http://www.cycleworld.com/article.asp?section_id=3&article_id=853

So is this a good thing?  Does it even matter to us everyday Ducatisti?

[Raux]

i would say not a good thing. a publicly traded company is owing to its stock holders to make the right choices.. including giving us what we want at a good price... a private company... it does what it wants for how much it wants.. and if doesnt' make money.. it goes dead.

[supertjeduc]

I think a public owned company wants short therm profit
A private owned company wants long therm profit
So private is better for the company ,public better for shareholders

[mmakay]

Company ownership should not be confused with company management.  Lamborghini is publically owned.  Does the Ghallardo lack passion, or disappoint?

[Raux]

exactly... how many times through the years when Lambo was privately held, did it almost die.

[sh]

This would be a good move for Ducati.

They'll save a huge amount of money being a private company.  No need for armies of lawyers to create all the bureaucracy required to operate a public company. 

They'll be able to act faster and take calculated risks without being subject to fickle public markets.

I'd expect better and more innovative products from a private Ducati.

[derby]

i would say not a good thing. a publicly traded company is owing to its stock holders to make the right choices.. including giving us what we want at a good price... a private company... it does what it wants for how much it wants.. and if doesnt' make money.. it goes dead.

what does that have to do with anything? the only "duty" a public company has is to it's shareholders.

[Ivan]

It may be that the current group of owners/investors consider the company to be undervalued with respect to what they perceive as the future growth prospects, so they are going to buy all of the outstanding stock shares.  This is usually a good sign, they must be making money in order to come up with the cash for the buyback (unless they are borrowing cash to  finance the purchase).  In the future, if they need to raise capital they can always offer shares for sale again to the public.

[SP3]

what does that have to do with anything? the only "duty" a public company has is to it's shareholders.

Spot on.