Key Ducati shareholder Investindustrial is to launch an up to 390 million euro takeover of the Italian motorbike manufacturer it said in a statement yesterday sending the shareprice up 20 pct.

Key Ducati shareholder Investindustrial is to launch a 390 million euro takeover of the Italian motorbike manufacturer. Ducati's shares were suspended on the stock exchange before Investindustrial and its partners, BS Investimenti and HOPP (Hospital of Ontario Pension Plan), issued a statement which offered to buy the company at 1.70 euros a share.

Ducati's share price, which has slid 37 percent from an all-time high achieved last July when speculation surrounded a possible deal with or takeover by US motorbike firm Harley Davidson, rose by a record 20 percent yesterday when trading resumed, climbing by 28 cents to close at a price of 1.68 euros. Banking group Intesa Sanpaolo SpA will finance half of the purchase the investors revealed in their statement.

Following the implementation of a comprehensive restructuring plan which saw a renewal of its motorbike range Ducati finally returned to profitability last year, posting a 13.3 million euro net income, after several years of incurring major loses. Ducati is now targeting 10 percent growth a year. The Italian firm has also impressed on the race tracks, sensationally winning the MotoGP World Championship drivers' and manufacturers' titles last year.

Investindustrial is a leading Southern European investment group with approximately 1 billion euros of assets under management. Investindustrial evolved from a division of the BI-Invest Group, a leading Italian financial and industrial group owned by the Bonomi family which was established in the 1970’s to manage the non-core investment portfolio.

Its first investment programme was from 1990 to 1999 where the firm operated as an evergreen industrial holding company. In 2000, Investindustrial launched its second investment programme and first third-party fund, Investindustrial L.P., with a final closing of 323 million euros. In October 2005, Investindustrial launched its third investment programme, Investindustrial III L.P., raising total capital of 500 million euros.

Investindustrial provides industrial solutions and capital to mid-market companies principally in Italy and Spain. Its mission is to actively contribute to the development of the companies in which it invests, by creating growth opportunities and offering global solutions through an entrepreneurial pan-European vision. Investindustrial is advised by a dedicated team of 18 professionals with offices in Milan, Madrid, Barcelona, London and Luxembourg.

Investindustrial bought its 29 percent stake in Ducati from Texas Pacific Group in March 2006 at a transaction price per share of 0.85 euros and was made through Investindustrial Holdings S.A., a wholly-owned subsidiary of Investindustrial, or through one of its affiliates. Minority shareholders in the transaction was HOOPP, the Canadian Pension Fund and BS Private Equity, an Italian private equity player. The total investment was for 72 million euros, including 24 million euros for a capital increase.