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Dean Kronsbein, 61, was thrown off the 70ft Amore as its captain reportedly took evasive action to avoid a boat. He was pulled from the Med off Porto Cervo but could not be saved.

His wife Sabine, 59, and daughter Sophia, 27, were last night being treated for serious injuries at a specialist hospital at Sassari.

The Amore lost its bow in the collision and skipper Mario Lallone was placed under investigation by officials.

Witnesses, including four friends of Mr Kronsbein who were on the yacht on Sunday, will also be questioned as will local rescuers who tried to help the family.

Mr Kronsbein ran healthcare equipment maker Ultrafilter Medical of Ross-on-Wye. The family owns nearby £5million seven-bedroom Cubberley House and bought a four-bedroom villa close to Porto Cervo this year.

Last month Mr Kronsbein hosted a party at his 100-acre Herefordshire mansion for the Bentley Drivers Club, attended by his close friend TV presenter Richard Hammond and by Prince Michael of Kent.

Family lawyer Egidio Caredda said yesterday: “Mr Kronsbein’s son Dustin flew out from England when he heard the news and he has been with his mother and sister. They are both very seriously hurt.”

The wrecked yacht was towed away by coastguards and has been impounded during the investigation.

The Amore is registered in the port of Monfalcone, Italy but it is unclear if Mr Kronsbein owned or chartered it.

Coastguard Francesco Colarullo said: “Speed may have been an issue and we know that other vessels were in the area at the time and the accident may have happened while evasive action was taking place. He was unconscious when he was recovered.”

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