Billionaire rival for control of Generali slams board in surprise resignation, said to plot new attack

A key contender in the power struggle at  Generali stormed from the table with a surprise board resignation, leading to reports he will gather allies to present his recommendations for new leadership and new directions at the insurer already in February.

Board director Francesco Caltagirone, wielding just over 8% of the group's shares, resigned from his post, citing board procedures which he claims prevent proper oversight, Generali said in a statement late Thursday evening.

Caltagirone will join with allied shareholder and fellow billionaire Leonardo Del Vecchio to put forward a new CEO candidate and a rival business plan for the Italian insurer yet in February, Reuters reported, citing an unspecified inside source.

Caltagirone complained of being "clearly opposed, prevented from making his own critical contribution and from ensuring adequate control,” Generali said in its summary of the resignation.

To Caltagirone's eye, working methods surrounding construction of Generali’s latest three-year strategy, access to information, the construction of board proposals for management posts, access to media and shareholders - everything has served to block his path.

Generali roundly rejects those accusations.

"The reasons given can only be categorically rejected as the Company has always conducted its business according to criteria of absolute transparency and rigorous fairness," board chairman Gabriele di Genola was quoted saying in the Generali statement.

In particular, construction of the management board in its current lineup followed rules of "absolute transparency and rigorous fairness ... without exception and on every occasion," di Genola said.

Caltagirone has been at odds with prevailing shareholder leadership and board management under Philippe Donnet since at least a fractured 2021 GM. He later brought Del Vecchio and others on board to build votes to counter the lead of shareholder Mediobanca, media reports have indicated.

Current management moved in December to shore up its support, offering shareholder’s the group’s first buy-back in recent memory as part of a new three-year strategy.

Generali is slated for its AGM on April 29, 2022 with a presumed face-off over leadership.

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.