Italian Yacht Builder Ferretti Is Involved in an Espionage Case
In April 2024, Xu Xinyu, an executive director at Ferretti SpA, noticed two men in an SUV outside Ferretti's headquarters in Milan. Xu also sits on the board of the Weichai Group, which acquired the Ferretti Group in 2102, when the builder of Riva Yachts, Custom Line, CRN, and other brands was in financial trouble.
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Xu also observed the pair following him while visiting hotels in the city, Bloomberg reported. He hired a counter-surveillance company, which reportedly found a listening device and signal amplifier hidden in his office. Other devices were found in the offices of Ferretti's Chinese-Italian translator and board secretary.
The story cites unnamed sources who claimed relations between Weichai and some executives at Ferretti had deteriorated because of a proposed stock buyback program that would have allowed the repurchase of 10 percent of the shares. The buyback plan was briefly examined by the Italian government under a special 'golden' provision that allows it to oversee 'strategic' Italian brands with foreign ownership. A very small percentage of Ferretti's boat production is for the defense sector, thereby placing it in the strategic category.
The Chinese members of the Ferretti board, comprised of six Chinese and three Italians, were initially against the buyback proposal, according to the sources. That decision, according to Bloomberg, caused dissension between Ferretti CEO Alberto Galassi and some members of the board.
In March 2024, Galassi formally notified the Italian oversight committee of the buyback initiative. But that was earlier than the Chinese directors had expected. Bloomberg's sources say they thought the Chinese board members worried that Galassi could be using 'the golden share rule to sideline them by seeking allies in the Italian government.' The stock buyback proposal was withdrawn by the end of the month.
Ferretti issued a statement denying that Galassi had gone against the board's wishes, according to Bloomberg. It said the notification 'was carried out with the formal and definitive approval of the Board of Directors.' The statement went on to say that 'the relationship between the shareholders and the company is excellent, marked by ongoing collaboration and mutual respect.'
Ferretti did not immediately respond to Robb Report's request for comment.
Following the discovery of the surveillance on Xu and others, some of the board members reportedly suspected it might have originated with Ferretti's upper management. Xu initiated a criminal case against 'persons unknown' in May 2024, for unauthorized access to a computer system and unlawful interference in private life.
In January 2025, following an internal investigation, the Ferretti Group filed its own complaint with the Milan prosecutor's office. 'Ferretti SpA considers itself an aggrieved party, having been wronged by the unlawful and improper installation of surveillance devices within its offices,' the statement said.
Ferretti says there is no tension between it and Weichai. 'The shareholder and the company have enjoyed a relationship of mutual esteem and full, constructive collaboration for over 10 years,' the brand said in a statement to Bloomberg.
The cases remain in the initial stages of investigation, with no certainty that any criminal charges will be pursued.
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