EssilorLuxottica Founder’s Son Urges Fresh Strategy After Steep Stock Drop
Calls for Strategic Change Amid Market Challenges
Background and Recent Developments
CERNOBBIO, Italy, Sept 6 (Reuters) - Franco-Italian eyewear group EssilorLuxottica needs a new strategy after losing more than half of its stock market value in recent months, the son of its late founder said on Sunday.
Leadership Changes and Internal Tensions
• Leonardo Maria Del Vecchio last month stepped down from management roles at the group, whose brands include Ray-Ban, Oakley and Vogue Eyewear, after reported tensions with CEO Francesco Milleri, but remains an investor in the group through family holding company Delfin.
Hopes for a New Chapter
• Speaking on the sidelines of the annual TEHA Ambrosetti conference on the shores of Lake Como, Del Vecchio said he was hoping for "a new chapter" for the group.
Delfin’s Investments and Influence
Stake in EssilorLuxottica and Financial Sector Interests
• Delfin has a 32.4% stake in EssilorLuxottica and also owns stakes in several financial groups in Italy, including 17.5% of Monte dei Paschi, which is the target of a takeover bid by Intesa Sanpaolo.
Focus on EssilorLuxottica’s Legacy
Concerns Over Market Value and Strategic Direction
• Del Vecchio said there was too much focus on his relations with Milleri, who also chairs Delfin, and the current consolidation wave in the Italian banking sector.
• "Banks are a financial investment. The industrial investment that must be protected is EssilorLuxottica," Del Vecchio said. "EssilorLuxottica is Delfin's legacy, our father's true investment and enduring legacy, yet it has lost 50% of its market value."
Governance and Transparency Issues
Criticism of Board and Decision-Making
• Del Vecchio also said that no one had yet asked Delfin's investors what to do with the stake in Monte dei Paschi and criticised the board of the holding company for alleged opaqueness.
Reporting and Editorial Credits
(Reporting by Giancarlo Navach; Writing by Francesca Landini; Editing by David Holmes)
