Generali's CEO Refuses To Resign, Calls For Support

The chief executive of Italy's Assicurazioni Generali SpA (G.MI) refuses to resign under pressure from some disenchanted shareholders, and has urged board members to support him to avoid destabilizing the Italian insurer at a time of crisis in the country, business daily Il Sole 24 Ore reports Friday.

"Any move to destabilize the biggest financial institution in the country...would be inappropriate," Chief Executive Giovanni Perissinotto wrote in a letter to board members ahead of an extraordinary meeting called for Saturday, the daily says.

The meeting was organized by Italian merchant bank Mediobanca SpA (MB.MI), Generali's biggest shareholder with a 13.5% stake, with the aim of putting pressure on Perissinotto to step down, people familiar with the matter told Dow Jones Newswires Thursday.

In the letter, Perissinotto speaks of his "incredulity" that "Mediobanca has deemed it appropriate and advisable yet again to put its interests above those of the company," the report says.

He acknowledges the company's share price has underperformed, but points to the insurer's "historic, current and significant exposure to Italy and the fact that we have been and are loyal supporters of Italian sovereign debt."

Efforts to diversify Generali's exposure to risk had been resisted by key shareholders because it would have led to the "dilution of (their) shareholding and reduce their influence over the group," the daily quotes Perissinotto's letter as saying.

He also questions the merits of a merger between Unipol Gruppo Finanziario SpA (UNI.MI), Fondiaria-SAI SpA (FSA.MI) and related entities, which has been spearheaded by Mediobanca.

Fondiaria-SAI owes Mediobanca about EUR1 billion, and the bank is involved in the merger process to ensure its repayment.

Fondiaria-SAI's merger with Unipol would create Italy's second-biggest insurer in terms of premiums after Generali.

Newspaper website: www.ilsole24ore.it

-Milan Bureau, Dow Jones Newswires; +39 02 5821 9901

Unipol Gruppo (BIT:UNI)
Historical Stock Chart
From Jun 2024 to Jul 2024