Ray-Ban scion snubs Del Vecchio family holding meeting as rifts deepen (updated)

Assicurazioni Generali SpA

Tue 15:03

Updates with outcome of meeting from first paragraph onwards
Meeting was due to finalise family holding ownership overhaul
Plan has stalled as divisions among heirs deepened
Family clash unfolds as EssilorLuxottica share price plunges
Holding has key role to play in Italian banking consolidation
By Valentina Za

    MILAN, June 30 (Reuters) - Divisions among the heirs of late Ray-Ban magnate Leonardo Del Vecchio blocked a proposal to streamline the ownership structure of the family's holding company, prompting the plan's proponent to desert a shareholder meeting on Tuesday.
Leonardo Maria Del Vecchio, one of the late Luxottica founder's six children, said in a letter addressed to his fellow heirs that he had decided not to attend a meeting which could not be "productive".
Before the family feud spiralled out of control, filling the front pages of Italian newspapers, the heirs had been expected to finalise an accord agreed only two months ago to strengthen Leonardo Maria Del Vecchio's grip on the Delfin family vehicle.
Leonardo Maria Del Vecchio's €10 billion proposal to buy out two of his siblings would have helped to settle a web of cross lawsuits over the inheritance.
He complained in the letter that Delfin's board had been uncooperative and some directors had acted in a way that generated "confusion and mistrust."
He also said he had not received the documents needed to approve the Luxembourg-based vehicle's 2025 accounts which the rest of the board approved on Tuesday.
The clash within Delfin is unfolding after EssilorLuxottica  ESLX.PA shares, one of its main investments, tumbled over the past year, while a new wave of consolidation in Italian banking has given Delfin a pivotal role due to its investments in the sector.
With its 17.5% stake in Monte dei Paschi di Siena BMPS.MI, Delfin will be key in deciding the success of a takeover bid for the Siena-based bank announced by top Italian lender Intesa Sanpaolo ISP.MI.
     
DIVISIONS AMONG HEIRS
Eyewear magnate Del Vecchio, who died in 2022, divided his assets equally among his six children, as well as his widow and her son from another marriage. Each owns 12.5% of Delfin.
Delfin owns 32.4% of eyewear giant EssilorLuxottica as well as stakes in Italian insurer Generali GASI.MI and bank UniCredit CRDI.MI, in addition to the Monte dei Paschi holding.
To overcome the equal ownership structure and streamline decision-making, 30-year-old Leonardo Maria Del Vecchio in late April gained family approval to buy two further Delfin stakes to get to 37.5%.
However, the buyout plan stalled amid difficulties in securing bank financing as lenders sought additional safeguards from Delfin's board while tensions among the heirs flared.
Leonardo Maria Del Vecchio said he had not received documents he needed in his negotiation with the banks funding his project.
Meanwhile, an alternative proposal was advanced by Rocco Basilico, the son of Del Vecchio's widow from a previous marriage, to sell all of Delfin's stakes except the one in EssilorLuxottica.
The plan looks equally hard to pursue, leaving a question mark over the future.

(Reporting by Valentina Za
Editing by Keith Weir)
((valentina.za@thomsonreuters.com; +39 02 6612 9526;))