High-End Yacht Manufacturer Under Scrutiny Amid Dual Criminal Probes

Italian luxury yacht manufacturer Ferretti SpA, renowned for crafting opulent vessels for the elite, is currently embroiled in two criminal investigations following the discovery of surveillance devices at it’s Milan headquarters in April 2024. As reported by Bloomberg, this unsettling situation began when Xu Xinyu, a board member and executive director representing the Chinese majority owner Weichai Group, grew wary after spotting an SUV and two unfamiliar men lingering outside their historic office.

Xu’s suspicions deepened as he noticed these individuals frequenting upscale hotels like the Mandarin Oriental. Concerned about his privacy, he enlisted a private counter-surveillance firm that uncovered a listening device and signal amplifier cleverly concealed on his desk. Further inspections revealed additional surveillance gadgets hidden within power outlets in other offices. Ferretti has as confirmed to Bloomberg that such equipment was indeed found.

Considering these alarming findings,Xu along with the board secretary and translator filed criminal complaints with Milan prosecutors in May 2024 against unknown perpetrators for unauthorized access to computer systems and invasion of privacy—offenses that could lead to serious legal repercussions if substantiated. Ferretti itself lodged a separate complaint in January 2025.

The investigations are still unfolding without any named suspects at this point. Legal experts have noted that while Italian law typically mandates public disclosure of notable security breaches by listed companies, Ferretti has yet to inform its investors about either complaint or the espionage incident.

Describing itself as wronged by these unlawful actions, Ferretti emphasized there were no internal disputes affecting its relationship with Weichai—a partnership they claim has been respectful for over ten years.

Tensions had already been brewing within the company prior to this incident; back in February 2024, CEO Alberto Galassi clashed with some board members regarding a proposed share buyback plan aimed at repurchasing up to 10% of shares—a move initially met with resistance from Chinese directors due to potential scrutiny from Italian authorities under national security laws.

Italy’s golden power law allows government intervention in strategic sectors including defense and telecommunications—areas where Ferretti operates due to its production of boats used by police forces—even though this segment represents less than half a percent of their sales figures.As relations between Italy and China soured post-2019,authorities have become increasingly vigilant regarding Chinese investments. For example, Pirelli SpA faced governance challenges linked directly to technology transfer issues involving Sinochem—a major Chinese stakeholder.

Sources indicate Galassi informed Italian officials about the buyback plan shortly after it was proposed; though, some Chinese board members were taken aback by how quickly it was filed—raising suspicions about Galassi’s intentions possibly aimed at consolidating support from local authorities against them. Nevertheless, Ferretti maintained that all necessary approvals were secured before proceeding with any filings.

On March 31st—the day after filing—the board decided against moving forward with both the buyback plan and golden power application due to further legal considerations required both domestically and internationally.

Following these events came revelations regarding surveillance activities; Xu first alerted Galassi on May 31 during discussions but hesitated sharing detailed reports initially requested for an internal investigation into potential insider involvement concerning device placement within company premises.

As tensions mounted among board members over leadership stability amid growing concerns surrounding corporate governance practices—including discussions around replacing Galassi—an August reshuffle saw Jiang Kui appointed as new chairman representing Weichai interests.

Ferretti announced on October 23rd it would initiate an internal probe leading up until their formal complaint submission on January 20th next year.

Opinions diverge among legal professionals regarding whether timely public disclosure was warranted given ongoing investigations lacking clear suspects or definitive outcomes thus far—with one lawyer suggesting caution may have been prudent while another argued market-sensitive facts should be disclosed promptly irrespective.

For now though? The inquiries continue without clarity on possible charges ahead!