Del Vecchio Heirs Dispute Delfin Reforms and Banking Stakes at Key Meeting
By Valentina Za
Family Feud and Financial Stakes at Delfin Shareholder Meeting
MILAN, June 30 (Reuters) - Heirs of late Ray-Ban billionaire Leonardo Del Vecchio are set to face off on Tuesday at a shareholder meeting of their Delfin vehicle, after trading barbs in recent weeks over conflicting proposals to change the set-up of the family holding.
Background: Governance Changes and Inheritance Disputes
Before the family feud spiralled out of control, filling the front pages of Italian newspapers, the heirs had been expected at the meeting to finalise an accord agreed only two months ago to amend Delfin's governance set-up and give more sway to one of the heirs.
The proposal was meant to settle a web of cross lawsuits over the inheritance.
Shareholder Meeting Focus
Called to approve Delfin's financial accounts, the general assembly on Tuesday of the Luxembourg-based vehicle is now expected only to underline the deeper rifts that have emerged since the governance overhaul was proposed.
Delfin's Role in Banking and Investment
The clash within Delfin is unfolding after EssilorLuxottica 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.
Banking Stakes and Influence
With its 17.5% stake in Monte dei Paschi di Siena, Delfin will be key in deciding the success of a takeover bid for the Siena-based bank announced by top Italian lender Intesa Sanpaolo.
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.
Buyout Proposal and Governance Restructuring
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 out two of his siblings and get a 37.5% stake in a €10 billion deal.
Delfin's Investment Portfolio
Delfin owns 32.4% of eyewear giant EssilorLuxottica as well as stakes in Italian insurer Generali and banks Monte dei Paschi and UniCredit.
Challenges and Alternative Proposals
However, the buyout plans stalled amid difficulties in securing bank financing as lenders sought additional safeguards from Delfin's board while tensions among the heirs flared.
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.
Uncertain Future
The plan looks equally hard to pursue, leaving a question mark over the future.
(Reporting by Valentina ZaEditing by Keith Weir)
