Italian billionaires seek allies in battle over Generali CEO

Caltagirone SpA

17/09/2021 16:21

By Gianluca Semeraro and Claudia Cristoferi
    MILAN, Sept 17 (Reuters) - Two Italian tycoons who are
leading investors in Generali  GASI.MI  are looking for allies
after joining forces in a bid to have a say over the choice of
the insurer's next chief executive, a document showed on Friday.
    Construction magnate Francesco Gaetano Caltagirone and
eyewear billionaire Leonardo Del Vecchio on Saturday unveiled a
shareholder pact to consult over decisions concerning Generali
ahead of a general meeting in early 2022 to name a new board.
 urn:newsml:reuters.com:*:nL8N2QD03Y
    Following a request by market regulator Consob to disclose
additional information about the agreement, Generali on Friday
said the pact clinched by Del Vecchio, 86, and Caltagirone, 78,
was open to other investors.   
    The two shareholders have no plans to effectively control
the insurer through their combined 11.1% stake, so as to avoid
triggering a mandatory buyout offer, the document said.
    Generali CEO Philippe Donnet has come under pressure from
Caltagirone and Del Vecchio, who consider his merger and
acquisitions strategy insufficiently ambitious, sources have
previously said.  urn:newsml:reuters.com:*:nL8N2QD04T
    Donnet has the backing of Mediobanca  MDBI.MI , Italy's top
investment bank and the main Generali investor with a 13% stake.
    In a move that could potentially give them more clout over
Generali, both Del Vecchio and Caltagirone have built stakes in
Mediobanca.
    Highlighting a fracture within the board, Generali on Monday
said a majority of its directors was in favour of Donnet's
reappointment.  urn:newsml:reuters.com:*:nL8N2QG517
    Without a compromise, Del Vecchio and Caltagirone are ready
to back an alternative CEO candidate, sources have said. 
    But they need to recruit allies to counter the influence of
Mediobanca, which on Monday could count on the support of eight
out of 12 non-executive Generali board members at the meeting. 
    Among the eight was Lorenzo Pelliccioli, who represents
Italy's De Agostini group, a 1.5% investor in Generali,
according to people close to the matter.
    Italy's Benetton family and Turin-based banking foundation
CRT, which together own 5.4% of Generali but have no
representatives on its board, have yet to take sides and could
take a decision in the coming weeks, the people said.
    The Benettons and CRT had no comment.
    Del Vecchio and Caltagirone will have to contend also with
institutional investors, which own around 40% of Generali,
Europe's third-largest insurer.

 (Reporting by Claudia Cristoferi, Gianluca Semeraro; writing by
Valentina Za; editing by Steve Orlofsky)
 ((valentina.za@tr.com))