One in every of Generali’s largest traders is contemplating difficult the reappointment of longstanding CEO Philippe Donnet in Might and is weighing potential various candidates to guide Italy’s largest insurer, 4 sources near the matter stated.
Three years in the past Francesco Gaetano Caltagirone, an Italian building and publishing billionaire with a 6.9% stake in Generali led a failed try to interchange Donnet, who had backing from the insurer’s board and its largest shareholder Mediobanca.
Caltagirone, in addition to the late billionaire Leonardo Del Vecchio, has criticized Donnet, on the helm of the insurer since 2016, for failing to grow Generali sufficiently.
Extra not too long ago the 2 traders expressed reservations a few proposed asset administration three way partnership between Generali and France’s BPCE over issues in regards to the affect the French facet might have within the partnership.
Caltagirone has not but selected his technique at a shareholder vote on Might 8 to elect a brand new Generali board and will nonetheless decide to not nominate a brand new CEO candidate, one of many 4 sources stated.
However, he’s contemplating proposing various candidates together with present Enel CEO Flavio Cattaneo, who in 2022 was appointed as a Generali director amongst Caltagirone’s representatives, three of the sources instructed Reuters.
Cattaneo is anticipated to be put ahead once more by Caltagirone as a director. Nevertheless, proposing him as a candidate for CEO can be extra problematic given his present function.
A spokesperson for Enel stated his present mandate at Enel doesn’t expire till 2026, “due to this fact the Enel CEO just isn’t free to imagine different roles.”
“This rumor is completely groundless in addition to destabilizing, additionally bearing in mind that Enel is a listed firm,” the Enel spokeperson stated.
There are comparable points with two different candidates who’re below the eye of Caltagirone, the sources stated.
Caltagirone has good relations with nationwide postal service Poste Italiane CEO Matteo Del Fante and Rome utility Acea boss Fabrizio Palermo, the sources stated, including he’s contemplating both as a substitute for Donnet.
Representatives for Poste, Acea and Caltagirone all declined to remark.
Donnet has stated he is able to keep on for one more time period, however, in contrast to the final time spherical, he isn’t being put ahead by Generali’s board after Italy’s authorities modified company guidelines on succession making it more durable for an outgoing board to appoint candidates.
The uncertainty over Generali’s management comes as prime shareholder Mediobanca faces a hostile takeover bid by Monte dei Paschi di Siena (MPS), a state-backed financial institution wherein Caltagirone constructed a stake since November.
In rejecting the MPS bid on January 28, Mediobanca flagged the cross-shareholdings amongst MPS, Generali and Mediobanca.
Caltagirone and the heirs of Del Vecchio collectively personal 17% of Generali, 27% of Mediobanca and 15% of MPS.
Three years in the past, Caltagirone and Del Vecchio had been defeated in a shareholder vote after placing ahead former Generali government Luciano Cirina as their CEO candidate.
In a shock transfer that provides CEO Andrea Orcel weight within the potential conflict between Mediobanca and Caltagirone, UniCredit has disclosed a 4.1% fairness stake in Generali.
(Reporting by Stefano Bernabei, Giuseppe Fonte, Francesca Landini, Elvira Pollina, Gianluca Semeraro; Writing by Valentina Za; Enhancing by Giselda Vagnoni and Elaine Hardcastle)
{Photograph}: Generali CEO Philippe Donnet; photograph credit score: Generali
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