MV Agusta really DID screw Harley

When Harley-Davidson announced that MV would be sold back to Castiglioni, they didn’t mention the price of the sale. As a publicly traded company, however, you can’t actually keep that a secret.

Via the Wall Street Journal, according to the company’s 8-K filing, the sale price was 3 Euros. But get this:

In the filing Harley said it “contributed 20 million Euros to MV as operating capital” that was put in escrow and is available to the buyer over a 12-month period. The buyer is Claudio Castiglioni, who, with his brother Gianfranco, ran MV Agusta for years before selling it to Harley two years ago for about $109 million.

So, H-D paid $109 million for MV, they then had to pay $162.6 million in write-downs to cover MV’s bad debts, and then they had to pay Castiglioni another $20 million to take it back.

I’m sorry, but that’s just hilarious!

But, of course, I’m not a Harley shareholder. They probably aren’t as amused to learn this.

Author: Dale Franks

Dale Franks is the former host of The Business Day, ”a daily, four-hour business and financial news program on KMNY Radio in Los Angeles. From 2002-2004, he was a contributor on military and international affairs for TechCentralStation.com. Currently, he a publisher and editor of the monthly political journal The New Libertarian, as well as an editor of the popular web log, Q and O. Dale served as a military police officer in the United States Air Force from 1984 to 1993, in variety of assignments both in the United States and Europe, where he also was assigned to the staff of the Headquarters of Allied Forces Central Europe. In addition to broadcasting, writing, and speaking on various topics, Dale has also been a long-time technical training instructor on a variety of computer software and technology subjects. Dale has also long been involved with information technology as an accomplished web designer, programmer, and technologist, serving as the corporate knowledge specialist for Microsoft Outlook at SAIC, the nation's largest employee-owned corporation. Additionally, he is the author of a number of software user guides used for classroom training by one of Southern California’'s premier computer training and consulting firms. His book, SLACKERNOMICS: Basic Economics for People Who Find Economics Boring, is available from Barnes & Noble.

2 thoughts on “MV Agusta really DID screw Harley”

  1. Reminds me of Novell buy WordPerfect for over a $1 billion, then a couple years later selling it to Corel for about $100 million.
    These are scary signs that company management has a “make the deal” problem.  Where “making the deal” is more important than what is in the “deal.”

  2. The union members in Milwaukee are being told to renegotiate their contract 2 years early to save a mere 50 million or the factory moves out of town. I told a friend in the union about this and she was pissed….

Comments are closed.