Ray-Ban heir steps up battle for family empire
What's the story
31-year-old Leonardo Maria Del Vecchio, the heir to the Ray-Ban fortune, has publicly challenged his family's holding company. He is seeking support for a proposed €10 billion ($11.5 billion) buyout of two of his siblings. The deal is part of his strategy to consolidate power and ease family rifts but faces complex financing hurdles and potential rival plans from Delfin's chairman. Delfin is the Luxembourg-based family holding company that controls EssilorLuxottica, the parent company that owns Ray-Ban.
Governance concerns
Accusations of indecision and lack of transparency
In an open letter published on the website of Quotidiano Nazionale, which he owns, Del Vecchio accused Delfin Sarl's board of failing to explain its changing stance on the proposed deal. He questioned why concerns about the transaction were raised only after shareholders voted in favor of key elements and public statements referred to it as a stabilizing move.
Shareholding strategy
Potential end to family succession saga
Del Vecchio is looking to buy the combined 25% stakes of his siblings Luca and Paola in Delfin. The deal would increase his stake to 37.5%, making him the largest shareholder by a wide margin. This could potentially end years of uncertainty over the succession of their family's empire, which has struggled with major decisions.
Financial hurdles
Financing hurdles for Del Vecchio
The buyout deal hinges on a complex €10 billion financing package with UniCredit, BNP Paribas, and Credit Agricole. This is one of the largest acquisition financings ever sought by an individual in Europe. As talks progressed, participating lenders have sought more certainty over future dividends, capital stability, and Delfin's long-term strategy.
Alternative proposal
Alternative plan in the works
Amid financing uncertainties, Delfin chairman Francesco Milleri is considering an alternative plan. This would see the holding company buy back the stakes being sold by Luca and Paola Del Vecchio at a previously agreed valuation of about €10 billion. The shares would then be redistributed among the six remaining heirs. The proposal could be presented to shareholders at the June 30 annual meeting.
Corporate influence
Delfin's growing significance in Italy's corporate landscape
With a net asset value of over €40 billion, Delfin has become a major player in Italy's corporate landscape. The holding company controls a large stake in EssilorLuxottica and has significant investments in some of Italy's most strategically important financial institutions. These include Banca Monte dei Paschi di Siena, Assicurazioni Generali, and UniCredit.