Activist Generali investors call for "open dialogue" (updated)

Caltagirone Editore SpA

15/02/2022 18:26

(Adds details)
    MILAN, Feb 15 (Reuters) - Two activist investors in Generali
 GASI.MI  on Tuesday urged Italy's leading insurer to engage in
"an open and constructive dialogue" to overcome issues that have
held back its growth.
    Generali is at the centre of a shareholder battle pitting a
group of investors including eyewear billionaire Leonardo Del
Vecchio against its single biggest shareholder Mediobanca
 MDBI.MI .
    Del Vecchio's Delfin investment vehicle and banking
foundation Fondazione CRT said it was important for a company of
strategic relevance for Italy such as Generali to engage with
shareholders and respect their rights.
    Delfin, Generali's third-largest investor, and CRT said
their consultation pact over Generali remained in place, as they
sought to provide their view of what the insurer's future should
be like after investing "significant resources" in it.
    "Delfin and Fondazione CRT are long-term shareholders," they
said in a joint statement.
    "As such they firmly believe only an open and constructive
dialogue ... can allow the insurer to pursue a path of
sustainable growth, overcoming issues that affected its
competitive positioning in Europe."
    Generali declined to comment.
    Del Vecchio and fellow tycoon Francesco Gaetano Caltagirone,
a construction magnate who is Generali's No.2 investor, have
complained in the past that Generali lags in size compared to
peers such as France's AXA  AXAF.PA  or Germany's Allianz
 ALVG.DE .
    Generali for its part has pointed out its total shareholder
returns since CEO Philippe Donnet presented his first business
plan in November 2016 surpass those of AXA and Allianz.
    Throwing the gauntlet at Mediobanca, Del Vecchio and
Caltagirone in September joined forces in a consultation pact
that was later joined by CRT. The two magnates are both
investors in Mediobanca, of which Del Vecchio owns nearly 20%.
    Caltagirone last month quit the Generali pact to avoid
drawing regulatory scrutiny ahead of proposing a slate of
nominees for the renewal of Generali's board in April. 
    Del Vecchio and Caltagirone have questioned Donnet's
reappointment, which is backed by Mediobanca and faces a
shareholder vote in April.
    People familiar with their thinking have said they believe
Generali has favoured paying dividends over expansion through
M&A.
    After backing Donnet's first two business plans, Caltagirone
voted against the CEO's new strategy in December while a
representative for Delfin did not attend the board meeting. They
have both stepped down from Generali's board since then.

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