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.
2 Responses to MV Agusta really DID screw Harley
Any messages transmitted to the administrator(s) or the author(s) of Dale's Motorcycle Blog, whether transmitted electronically or by any other means, may be reprinted at our discretion, and used for purposes of commentary, debate, satire, or humor. Transmission of such messages constitutes implied consent to publicly reprint such messages.