Milan (awp/afp) – Norway’s sovereign wealth fund, one of Generali’s shareholders, announced on Friday its intention to vote for the reappointment of Philippe Donnet as head of the leading Italian insurer, like other institutional investors.
The decision of the fund, the largest in the world, to support the list presented by the outgoing board of directors on which Mr. Donnet appears, was published on its website. The Norwegian fund holds 1.39% of the capital of Generali.
At the general meeting of shareholders scheduled for next Friday, this list will compete with another presented by construction magnate Francesco Gaetano Caltagirone, Generali’s second largest investor with a 9.95% share.
Mr. Caltagirone and his ally Leonardo Del Vecchio, founder of the eyewear manufacturer Luxottica which holds an 8% share, are vying for control of the insurer with Mediobanca, the main shareholder with 12.8% of the capital but 17.2% of the voting rights.
Associated with the CRT foundation (1.7%), the rebellious shareholders together weigh nearly 20% of the capital. Caltagirone nominated Luciano Cirina, a former head of Austria and the Eastern Europe region of Generali who was sacked after his candidacy was announced, for the post of CEO.
The choice of institutional shareholders, who represent 35% of the capital, will be decisive for this fierce battle. The two main shareholder advisory firms ISS and Glass Lewis, which are generally very popular with these investors, recommended voting for Mr. Donnet’s list, deeming it more credible.
Among the funds that have already expressed their support for the outgoing CEO are Fondazioni Casali, Union Investment, Calpers and British Columbia Investment Management.
A third list, very small, will be presented by Assogestioni, which brings together Italian institutional investors and represents 0.64% of the capital.
The slingers had published a strategic plan at the end of March presented as being “more ambitious” than the project of Mr. Donnet who is seeking a third term with record 2021 results to his credit.
This plan notably counts on an increase in earnings per share of more than 14% per year by 2024, compared to a target of 6 to 8% provided for by Mr. Donnet’s project, and a war chest of 7 billion euros. euros for mergers and acquisitions, against 3 billion euros included in the CEO’s project.
The consulting firm Glass Lewis judged that the opposing camp’s plan showed “disconcerting optimism”, without quantifying the associated costs or risks.
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