# Factbox: Billionaires battle CEOs at Italy’s Generali and Mediobanca Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-09-30 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Tycoons Clash: Generali vs. Mediobanca Power Struggle Meta Description: Discover the billionaire showdown at Italy's top investment bank and insurer. Learn about the clash over strategy and board nominations. URL: https://financedigest.com/factbox-billionaires-battle-ceos-at-italys-generali-and-mediobancahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-09-29t160326z1lynxmpeh8s0zartroptp4cattolica-assic-m-a-generali-1736837731414-compressed.jpg) MILAN (Reuters) – Power struggles at insurer Generali and Mediobanca have billionaires Leonardo Del Vecchio and Francesco Gaetano Caltagirone pitted against the CEOs of both groups. Here are the key facts in a growing confrontation over the strategies of both Italy’s most powerful investment bank and the country’s biggest insurer, which holds 61 billion euros in Italian government bonds. TYCOONS IN GENERALI PACT Del Vecchio, 86, Caltagirone, 78, clinched a [shareholder pact in September to consult over decisions concerning Generali ahead of a general meeting in early 2022 to name a new board](https://www.financedigest.com/shareholder-group-iss-backs-barclays-board-over-former-ceo-staley.html "Shareholder group ISS backs Barclays board over former CEO Staley"). They control a combined 12.5% stake in the insurer, after a [third smaller investor recently joined](https://www.financedigest.com/over-a-third-of-uk-people-think-thomas-whitmore-from-independence-day-will-be-joined-by-donald-trump-in-disneys-hall-of-presidents.html "Over a third of UK people think Thomas Whitmore from Independence Day will be joined by Donald Trump in Disney’s Hall of Presidents") their pact, and are opposing a third mandate for Generali’s current CEO Philippe Donnet, who has the backing of Mediobanca. They have criticised Donnet’s M&A strategy as too timid, but have not [explained what their alternative plan](https://www.financedigest.com/explainer-europes-fiercely-contested-plan-to-cap-gas-prices.html "Explainer-Europe’s fiercely contested plan to cap gas prices") is. MEDIOBANCA UPS GENERALI VOTING STAKE Mediobanca last week borrowed shares to secure 17.2% of the [voting rights in Generali until its AGM](https://www.financedigest.com/norway-wealth-fund-to-vote-for-labour-rights-motion-at-starbucks-agm.html "Norway wealth fund to vote for labour rights motion at Starbucks AGM") next year. Mediobanca gets a third of its revenue from a 13% stake in Generali and is the [biggest investor](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") in the insurer. GENERALI BOARD DIVIDED Generali’s outgoing [board on Monday agreed by a majority to file a slate of nominees for the April 2022 shareholder vote](https://www.financedigest.com/hsbc-board-recommends-shareholders-vote-against-spin-off-resolution.html "HSBC board recommends shareholders vote against spin-off resolution"), including Donnet as CEO. The decision was [backed by nine of 13 board](https://www.financedigest.com/two-thirds-of-iaea-board-backs-western-statement-pressuring-iran.html "Two-thirds of IAEA board backs Western statement pressuring Iran") members and opposed by the four representatives of the two tycoons. MEDIOBANCA FEUD Del Vecchio proposed [changing the merchant bank’s](https://www.financedigest.com/climate-change-fight-a-core-duty-for-central-banks-ecbs-villeroy.html "Climate change fight a ‘core duty’ for central banks – ECB’s Villeroy") by-laws at a shareholders meeting on Oct. 28, stepping up pressure on Mediobanca’s [top management](https://www.financedigest.com/tinnitus-management-market-to-top-us-3-2-bn-driven-by-growing-burden-of-hearing-disorders-fmi.html "Tinnitus Management Market to Top US$ 3.2 Bn Driven by Growing Burden of Hearing Disorders: FMI"). Del Vecchio, however, said he was not pushing for [management or board changes](https://www.financedigest.com/dispute-management-mindset-changing-the-disputes-game.html "Dispute Management Mindset: Changing the disputes game"). Luxottica’s founder is the [bank’s single biggest investor](https://www.financedigest.com/investors-trim-bets-for-peak-bank-of-england-rate.html "Investors trim bets for peak Bank of England rate") with a 18.9% stake. Caltagirone has also built a 3% stake in Mediobanca, piling [pressure on its CEO](https://www.financedigest.com/hungarys-otp-bank-pressured-by-ukraine-to-sell-russian-unit-ceo-says.html "Hungary’s OTP Bank “pressured” by Ukraine to sell Russian unit, CEO says") Alberto Nagel. SEEKING ALLIES Caltagirone and Del Vecchio are expected to present their own slate of nominees for Generali’s board, suggesting an alternative [candidate as CEO](https://www.financedigest.com/oranges-board-selects-three-candidates-for-new-ceo-sources.html "Orange’s board selects three candidates for new CEO – sources"). They are also seeking allies ahead of the April AGM. Italy’s powerful Benetton family, which owns 4% of Generali and 2% of Mediobanca, is under the spotlight after [announcing it was leaving](https://www.financedigest.com/impact-com-announces-new-global-parental-leave-policy.html "impact.com announces new global parental leave policy") the Milanese bank’s shareholders pact. Institutional [investors own around 40% of Generali and their vote](https://www.financedigest.com/glencore-courts-120-teck-investors-for-bid-backing-as-spinoff-vote-looms-source.html "Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source") would be decisive at the AGM. ($1 = 1.1714 euros) (Reporting by Gianluca Semeraro and Francesca Landini; Editing by Alexander Smith) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---