Describes an attempt to Texas Pacific Group (TPG), repurchase of the company, to acquire a controlling stake in Ducati Motor, the leading high-performance motorcycle company in the world, based in Bologna, Italy. Ducati is part of Cagiva, family-controlled industrial group. Cagiva fell on hard times and Ducati is a jewel in the group. But even Ducati is under great pressure and financial lack of working capital. Abel Halpern, a partner of TPG, upset because the deal with the owners, it seems, ever-moving target.
While TPG agreed with the seller for nearly a year. Despite costly due diligence efforts TPG, Abel Halpern is ready to get away from the deal. In its decision, it must be considered not only the evaluation and hiring of new management to turn the company around, but also the possibility of the potential exit through the public markets in Italy. "Hide
by Walter Kuemmerle, William J. Coughlin Source: Harvard Business School 30 pages. Publication Date: February 2, 2001. Prod. # 801 359-PDF-ENG