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Ruger settles proxy fight, Beretta gains board seat

Wall Street Journal Markets •
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Sturm Ruger’s board and Italy’s Beretta have sealed a settlement ending a months‑long proxy battle. CEO Todd Seyfert, appointed in March, said the deal followed legal maneuvers, transatlantic meetings and a poison‑pill defense. The agreement gives Beretta two Ruger board seats and the option to purchase up to 25% of the American firearms maker.

Ruger secured a guaranteed floor price for any shares Beretta may buy, while the Italian firm agreed to a stand‑still clause that limits resale for a defined period. Investors view the arrangement as a buffer against a hostile takeover, preserving Ruger’s autonomy yet adding a shareholder with extensive defense ties. The floor price, set near current market levels, caps short‑term volatility.

Seyfert stressed that the settlement buys the company “time” to focus on product development and strategic expansion rather than boardroom warfare. With Beretta’s presence, Ruger may tap European distribution channels while retaining its Connecticut‑based brand identity. The agreement leaves the stock price anchored by the floor level, giving shareholders clearly immediate certainty. Analysts also expect modest earnings uplift as the partnership opens new export opportunities.