Five bodies found as divers search sunken superyacht Bayesian for third day


Gillian Duncan
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Divers searching the wreck of a superyacht that sank off Sicily have found the bodies of five people.

British technology tycoon Mike Lynch is among the missing but so far Italian authorities have not publicly identified the bodies recovered.

The Bayesian was moored about 700 metres off the coast of Porticello when it sank on Monday after the area was hit by a storm. Sicily's Civil Protection Agency sources said rescue operations led by scuba divers scouring the wreck of the yacht found the bodies on Wednesday.

Six people were believed to be trapped inside the yacht when it was hit by a waterspout. They were unable to escape, according to authorities.

Salvatore Cocina, the head of Sicily’s civil protection agency, told the PA news agency that searches have finished for the day on Wednesday and will resume on Thursday morning.

He confirmed that of the five bodies found, only four had been recovered, and the whereabouts of the missing sixth person remains unknown.

The identities of the victims were not immediately given by the authorities. Reports say two of the bodies are of Mike Lynch and his daughter Hannah, 18.

As the first three bodies were taken back to the port of Porticello, dozens of emergency services staff were waiting, and one was seen being put in the back of an ambulance. The fourth was seen being taken to land as evening set in.

Rescue workers with a body bag after a luxury yacht, which was carrying British entrepreneur Mike Lynch, sank off the coast of Porticello in Sicily. Reuters
Rescue workers with a body bag after a luxury yacht, which was carrying British entrepreneur Mike Lynch, sank off the coast of Porticello in Sicily. Reuters

He said there would be an investigation in due course, but the priority was to find those who are still missing. Pictures also showed emergency services staff bringing a green body bag to shore.

Fifteen people, including Mr Lynch's wife Angela Bacares, who owns the boat, were rescued after it capsized. It is not clear when all the bodies could be recovered as authorities work on the theory that all the missing are still inside the vessel.

“We think they are still inside the boat,” said Vincenzo Zagarola of the Italian coastguard. “Our search-and-rescue activity by sea and air has gone on for about 36 hours.

“Of course, we do not exclude [the possibility] that they are not inside the boat but we know the boat sank quickly. We suppose the six people missing may not have had time to get out of the boat.”

Morgan Stanley International bank chairman Jonathan Bloomer, his wife Judy, Clifford Chance lawyer Chris Morvillo and his wife Neda are all missing.

The wreckage of Bayesian rests on the seabed off the coast, 50 metres below the surface.

The depth requires special precautions, limiting divers to rotating 12-minute shifts, a measure that has slowed down their work.

British tech entrepreneur among missing after Bayesian yacht sinks off Sicily – in pictures

The search teams, each made up of two specialised cave divers, are working to open up access points to enter the wreck, which is still intact, at a depth far beyond what most recreational divers are certified to reach.

Earlier, search crews carried out further inspections of the yacht's internal hull on Wednesday morning.

Fire crews from the Vigili del Fuoco said they had been accessing the vessel through natural entrances, without making openings.

Remotely controlled underwater vehicles are being used, with naval units and cave divers also taking part in the search, the Italian Coastguard has said.

Luca Cari, a spokesman for the rescue teams, has said the search was slower than a “much simpler” shipwreck operation in Italy, involving the Costa Concordia cruise ship that flipped on its side off Tuscany's coast in 2012, because of the depth of the wreck and the limited space divers have to manoeuvre. “Here everything is more tight,” he said.

The luxury superyacht Bayesian moored off Porticello in Sicily, hours before it sank in a raging storm. AFP
The luxury superyacht Bayesian moored off Porticello in Sicily, hours before it sank in a raging storm. AFP

The passengers had been invited on the luxury yacht trip to celebrate Mr Lynch’s recent acquittal of fraud charges in the US linked to the sale of Autonomy to Hewlett-Packard for $11 billion in 2011, which quickly turned sour after HP wrote down the value of the company – co-founded by the tech tycoon – by $8.8 billion.

Mr Lynch said he was “elated to be cleared” in the criminal trial, during which he took the stand in his own defence, denying to jurors any wrongdoing and blaming HP for botching the integration of the two companies.

One expert at the scene of the disaster, who declined to be named, said an early focus of the official investigation would be whether the yacht's crew had closed access hatches into the vessel before the storm struck.

The tragedy came only days after the death of Stephen Chamberlain, Mr Lynch's former colleague and co-defendant. The former vice president of finance at Autonomy was hit by a car in Cambridgeshire, eastern England, while out running on Saturday. He was placed on life support but later died.

Although there had been warnings of possible thunderstorms, there had been no indication they would be so violent on Monday morning.

The boat was thought to have been caught in a waterspout. Tornadic waterspouts share the same characteristics as land tornadoes and are associated with severe thunderstorms, often accompanied by high winds and seas, large hailstones and lightning, according to the US National Ocean Service.

They are not out of the ordinary for Italy, which experiences about 100 tornadoes a year, according to AtmosphericG2, a company that provides weather data to traders.

About 70 of these are “marine spouts,” occurring off the coast.

The captain of a yacht who helped to rescue 15 people from the stricken boat has described how his crew saw the distress flare set off from a life raft.

Karsten Borner said his vessel, the Sir Robert BP, was about 150 to 200 metres from the Bayesian when the “extreme” weather hit.

He said his boat was using its engine to stay in position and the crew noticed the Bayesian had disappeared before a passenger on his yacht saw the flare.

Mr Borner said they sent their dinghy, which found the life raft and took the occupants back to his yacht.

“We couldn’t see them any more and they disappeared from the radar. We were busy keeping our own ship sailing," he told Sky News.

“We couldn’t see the ship again so we were aware something was very wrong.”

Mr Borner said it was only when the dinghy set out that they found the life raft.

“It turned out to be the life raft, a 12-person life raft with 15 people inside, including one baby," he said.

“They stepped over to our tender and we brought them back to our ship. There we took good care of them, gave them dry clothes, towels, blankets, tea and coffee and so on and took care of them.”

Mr Borner said he helped the coastguard to launch its search-and-rescue mission for the other occupants of the Bayesian.

He said the captain of the Bayesian told him the yacht had sunk in two minutes but he had since seen a video that showed it go down in 60 seconds.

“The engineer and captain had no explanation why she sank so quickly," Mr Borner said. “My personal opinion is it shouldn’t tip like this. It goes against any logic.”

He also questioned the safety of the Bayesian’s 75-metre mast and added: “I think it’s not safe to build the masts.”

Describing the strength of the storm and sea spouts that hit his yacht and the Bayesian, Mr Borner said: “They were very close and we were hit very hard, very strong and they had the same.

“It was extreme, it was extremely strong.”

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: August 22, 2024, 11:39 AM