EssilorLuxottica: stock down 5%; governance crisis worsens
(CercleFinance.com) - The governance crisis at the head of EssilorLuxottica is getting worse: according to Le Figaro, "war has been declared" between the CEO Leonardo Del Vecchio, who is also the group's largest shareholder and the founder of Luxottica, and the former boss of Essilor International, Hubert Sagnières, who is now vice-chairman and deputy CEO.
As the sharpest faller in the CAC 40, the EssilorLuxottica share is currently down 5%, returning towards the 100 euro threshold.
Citing a press release from Delfin, Leonardo Del Vecchio's holding company, which owns over 30% of EssilorLuxottica, the daily reports that such behaviour (attributed to Hubert Sagnières, ed.) is a clear violation of the company's merger agreement and governance rules. A board meeting convened on Monday failed to find a solution and Delfin added that all possibilities (are being envisaged, ed.), including legal recourse. Hubert Sagnières has broken the pact signed in 2017, Mr. Del Vecchio said in the Figaro.
On the other side, the "Essilor clan" accuses Leonardo Del Vecchio of wanting to impose his will, Francesco Milleri, as EssilorLuxottica's future CEO, according to an intention expressed last November, although hits was moderated afterwards. Indeed, even if Delfin asserts in its statement that a "creeping" or "de facto" takeover of EssilorLuxottica is "out of the question".
In the meantime, the group's integration and the search for synergies have fallen behind schedule, and the giant's future is at stake, Le Figaro concludes.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
As the sharpest faller in the CAC 40, the EssilorLuxottica share is currently down 5%, returning towards the 100 euro threshold.
Citing a press release from Delfin, Leonardo Del Vecchio's holding company, which owns over 30% of EssilorLuxottica, the daily reports that such behaviour (attributed to Hubert Sagnières, ed.) is a clear violation of the company's merger agreement and governance rules. A board meeting convened on Monday failed to find a solution and Delfin added that all possibilities (are being envisaged, ed.), including legal recourse. Hubert Sagnières has broken the pact signed in 2017, Mr. Del Vecchio said in the Figaro.
On the other side, the "Essilor clan" accuses Leonardo Del Vecchio of wanting to impose his will, Francesco Milleri, as EssilorLuxottica's future CEO, according to an intention expressed last November, although hits was moderated afterwards. Indeed, even if Delfin asserts in its statement that a "creeping" or "de facto" takeover of EssilorLuxottica is "out of the question".
In the meantime, the group's integration and the search for synergies have fallen behind schedule, and the giant's future is at stake, Le Figaro concludes.
Copyright (c) 2019 CercleFinance.com. All rights reserved.