Billionaire Generali Investor Weighs Candidates to Problem CEO Donnet

One among Generali’s greatest traders is contemplating difficult the reappointment of longstanding CEO Philippe Donnet in Could and is weighing potential various candidates to guide Italy’s greatest insurer, 4 sources near the matter stated.

Three years in the past Francesco Gaetano Caltagirone, an Italian development and publishing billionaire with a 6.9% stake in Generali led a failed try to exchange Donnet, who had backing from the insurer’s board and its greatest 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 just lately the 2 traders expressed reservations a few proposed asset administration three way partnership between Generali and France’s BPCE over considerations concerning the affect the French aspect might have within the partnership.

Caltagirone has not but selected his technique at a shareholder vote on Could 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 advised Reuters.

Cattaneo is predicted to be put ahead once more by Caltagirone as a director. Nevertheless, proposing him as a candidate for CEO could be extra problematic given his present position.

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 underneath 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 alternative for Donnet.

Representatives for Poste, Acea and Caltagirone all declined to remark.

Donnet has stated he is able to keep on for an additional time period, however, not like the final time spherical, he’s not being put ahead by Generali’s board after Italy’s authorities modified company guidelines on succession making it tougher for an outgoing board to appoint candidates.

The uncertainty over Generali’s management comes as high shareholder Mediobanca faces a hostile takeover bid by Monte dei Paschi di Siena (MPS), a state-backed financial institution through which 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 have 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)

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