Italian gunmaker Beretta launches proxy fight for US firearms giant Sturm, Ruger & Co.

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Beretta, the renowned Italian gun manufacturer, is gearing up for a proxy battle to gain control of Sturm, Ruger and Co., the largest firearms maker in the United States, according to sources familiar with the situation as reported by The Post.

Insiders revealed that the centuries-old European company has acquired a 10% stake in Ruger and is planning to nominate four executives to join the nine-member board. This strategic move is aimed at increasing its influence over Smith & Wesson’s primary US competitor.

The nominated executives include William Franklin Detwiler from Fernbrook Capital Management, Mark DeYoung, the founding CEO of Vista Outdoor, Frederick Disanto, CEO of Ancora Holdings, and Michael Christodolou, the founder of Inwood Capital Management.

Ruger’s sales and share price have dropped in recent years. It is the major rival to US firm Smith & Wesson Bloomberg via Getty Images

A proxy fight is an unfriendly contest for control of a company in which a group of shareholders tries to convince other investors to vote out the current board of directors or management.

Any vote would likely take place at Ruger’s annual general meeting scheduled for May 29.

The clash has erupted amid a sales slump and plunging profits at Ruger, with the price of its shares cratering by over 40% in the past five years.

As of Wednesday’s close, Ruger’s market cap hovered at $581 million.

When Beretta first revealed an initial 9% stake in an October filing, it said that it wanted to explore “potential areas of operational and strategic collaborations” with Ruger.

The US firm then adopted a one-year shareholder rights plan amid concerns about a growing ownership stake accumulated by the Italian giant.