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MGPE Italian subsidiary to go ahead with MBO?

Earlier this month the Italian subsidiary of Morgan Grenfell Private Equity cancelled a planned buyout because of losses at the company.

The Financial Times reports this morning that the management of Morgan Grenfell Private Equity's Italian subsidiary may go ahead with a separate buyout which it cancelled earlier this month. This would distance it from the difficulties being faced by its UK parent.

The Italian arm, which has investments in Piaggio, the scooter manufacturer, and Gori & Zucchi, the jewellery company, is understood still to be focusing on plans for a buy-out of its own. The group, led by Dante Razzano, is looking at how to separate its funds and investments from the rest of MGPE.

Morgan Grenfell in the UK has had to put its own MBO on hold because of disputes over its involvement with EM.TV, reports suggest. The dispute is said to be between Morgan Grenfell chief executive Graham Hutton and Scott Lanphere, a director at the firm. Lanphere apparently opposed the EM.TV deal whilst Hutton did not share his concerns. It is suggested that once the rift has been resolved, a management buy-out will go ahead. The company made losses of about E300m after selling its 12.5 per cent stake in SLEC, the holding company for Bernie Ecclestone's Formula One business, for a stake in EM.TV.

The newspaper suggests that one of Deutsche Bank's other private equity businesses might absorb MGPE when Deutsche announces its restructuring into two main divisions this week.