A boardroom battle at Generali has escalated after the No.2 investor in Italy’s largest insurer resigned from the board in a problem to the reappointment of CEO Philippe Donnet.
Donnet, who’s searching for a brand new mandate as CEO, is on the heart of a battle between Generali’s largest traders, together with development and newspaper magnate Francesco Gaetano Caltagirone, who on Thursday stepped down from the board.
Caltagirone has teamed up with eyewear billionaire Leonardo Del Vecchio, the insurer’s third-largest shareholder, to problem the affect funding financial institution Mediobanca, Generali’s largest investor.
Caltagirone holds 8.04% of Generali, trailing Mediobanca’s close to 13% stake. Del Vecchio is the No.3 investor with almost 7%.
The 2 tycoons blame Mediobanca, which reaps a sizeable share of its revenue from Generali, for holding again the insurer’s enlargement, folks near the matter have mentioned.
Donnet, who’s backed by Mediobanca and a majority of board members, in December introduced Generali’s first buyback in 15 years and better dividends in a bid to maintain his job.
With Italy’s monetary sector in consolidation mode, the shareholder tensions are fueling hypothesis about potential M&A strikes involving each Generali and Mediobanca.
Del Vecchio, 86, in 2019 grew to become Mediobanca’s largest shareholder. Caltagirone has additionally just lately constructed a stake in Mediobanca.
Caltagirone and Del Vecchio in February are set to current their very own CEO candidate and an alternate technique for the insurer, an individual near the matter informed Reuters on Friday.
Caltagirone started his offensive in April when he snubbed a common assembly to approve Generali’s outcomes.
In an indication of rising hostility, he voted in opposition to Donnet’s new technique in December and has not attended board conferences currently, a second particular person with data of the matter mentioned.
He joined compelled with Del Vecchio in September and their session pact over Generali, which incorporates additionally smaller investor CRT, controls a stake of greater than 16% within the insurer.
The pact stays intact after Caltagirone’s resignation, a 3rd supply near Del Vecchio added.
To hold extra weight at a common shareholder assembly in April to nominate a brand new board, Mediobanca has borrowed shares to achieve a 17% voting stake.
However round 35% of Generali’s share capital is within the palms of institutional traders and small savers maintain one other 23%, that means their votes are more likely to resolve the result.
(Writing by Valentina Za; modifying by Jane Merriman)
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