Harley-Davidson May Bid for Rival Ducati

Milwaukee-based Harley-Davidson Inc. is preparing a bid for Italian motorcycle maker Ducati Motor Holding SpA., sources tell Reuters.

Volkswagen AG’s Audi unit, which has controlled Ducati since 2012, has been shopping the company since April. Tentative bids are expected in July. Reuters says VW hopes to raise at least €1.4 billion ($1.6 billion) through the sale, which a source says may not be finalized until the end of this year.

Harley-Davidson is working with Goldman Sachs on an offer, according to Reuters. Ducati has hired Evercore to represent it in the sale. The news service reports that Bain Capital, KKR and Permira are among other likely bidders. It says three other motorcycle makers—BMW, Hero MotoCorp and TVS Motor—have either dropped out or expressed no interest in Ducati.

VW announced a year ago it would review its assets and sell non-core holdings to help pay for a sweeping overhaul of the company’s corporate structure and manufacturing operations.