Italian billionaires seek allies in battle over Generali CEO (updated)

Caltagirone SpA

17/09/2021 19:15

* Italy's top insurer prepares to name new board
    * Shareholders at odds over choice of new CEO
    * Dispute pits Mediobanca against Del Vecchio, Caltagirone

 (Adds Fondazione CRT joining pact)
    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.   
    On Friday, banking foundation Fondazione CRT, which holds
1.4% of Generali, agreed to join the pact, its chairman,
Giovanni Quaglia, told Reuters.  urn:newsml:reuters.com:*:nL8N2QJ40E
    Del Vecchio and Caltagirone 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, which owns 4% of Generali but has
no representatives on its board, has yet to take sides and could
decide in the coming weeks following Fondazione CRT's decision,
the people said. The Benettons 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))