“Activist campaigns in Italy were less frequent in 2017; however, with greater institutional investor involvement in the country, the continued push for stronger corporate governance and greater accountability of Boards presents the possibility for activists to target undervalued companies in 2018.”

Jonathan Neilan, Managing Director

Country:
Italy

Country: Italy

Average % of insider ownership:

1.19

Activism
Threat Level


To learn more about this country, please click on the tabs below


In Italy, significant insider ownership by families and the government have tended to keep activist prominence subdued amongst large companies. Recent changes to Italian regulation to attract foreign investment – including reducing taxation, addressing the flexibility of the labor market, and improving the efficiency of the judicial system – are likely to continue to attract European as well as international activists.

Shareholders reaching, exceeding or falling below a three percent, five percent, and various higher thresholds in voting share ownership must disclose their voting interests to the investee company and the Stock Exchange Commission (CONSOB).

Five percent of voting share ownership gives shareholders power to request the board of directors to call ordinary or extraordinary shareholders’ meetings and to specify the agenda items to be submitted.

Both listed and non-listed companies can issue loyalty shares, which entitle beneficial owners holding the shares for a minimum period of 24 months to exercise two votes per share, strengthening the voting rights for controlling and long-term shareholders. The issuance of special classes of shares may also be used to alter the proportionality between ownership of and control over the company.

Another defense mechanism consists of limiting the maximum number of votes that a single shareholder may cast; however, these limitations must be contained in the corporate by-laws.


Top Campaigns by Type

1. Oppose Takeover Terms
2. Gain Board Representation
3. General Cost Cutting

Campaigns By Year

Total
Campaigns

39

Notable Invested Activists

Amber Capital
Vincent Bollore (Vivendi)
Litespeed Management LLC

Recent activism campaigns

Banca Popolare di Sondrio
VS.
Amber Capital
Telecom Italia
VS.
Vincent Bollore (Vivendi)
Mediaset SpA
VS.
Amber Capital

Total Active
Campaigns

5

Contact FTI Consulting

Geoff Serednesky

Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com

Ed Bridges

Senior Managing Director
+44 (0)20 3727 1067
Edward.Bridges@FTIConsulting.com