Heir's Bold Move: €10B Buyout Shake-up at EssilorLuxottica

Leonardo Maria Del Vecchio, a son of the late EssilorLuxottica founder, has initiated a public dispute regarding the family's investment vehicle, Delfin. The 31-year-old is advocating for a €10 billion buyout that would consolidate his control over the family's substantial assets. He seeks to acquire the combined 25% holding of his siblings, Luca and Paola, in Delfin, which would raise his own stake to 37.5%.

Del Vecchio has publicly questioned the Delfin board's shifting stance on the deal, particularly after initial endorsements. This significant financial maneuver involves a €10 billion financing arrangement with major banks, including UniCredit, BNP Paribas, and Credit Agricole. The banks have reportedly requested firmer assurances regarding dividends, capital stability, and Delfin's long-term strategy, which Del Vecchio believes the board has not transparently addressed.

Delfin's influence extends beyond eyewear, holding substantial stakes in EssilorLuxottica and key Italian financial entities like Banca Monte dei Paschi di Siena, Assicurazioni Generali, and UniCredit. With a net asset value exceeding €40 billion, Delfin plays a crucial role in discussions surrounding Italian banking consolidation.

A competing proposal, reportedly being considered by Delfin chairman Francesco Milleri, suggests the holding company itself could repurchase Luca and Paola's stakes at the same valuation. These shares would then be distributed among the six other heirs. This alternative route may be presented at an upcoming 30 June meeting, which Del Vecchio has described as pivotal for determining the "very nature and future of Delfin."