“Opportunity for activism in Italy is limited both by the concentration of controlling shareholders and a relatively low level of institutional ownership. Investors have increasingly overcome these hurdles and activism is becoming the norm.”
Ed Bridges, Senior Managing Director
Country:
Italy
Average % of insider ownership:
Activism
Threat Level
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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 2%, 5%, and various higher thresholds in voting share ownership must disclose their voting interests to the investee company and the Stock Exchange Commission (CONSOB).
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. Gain Board Representation
2. Oppose merger
3. Remuneration
Campaigns By Year
Total
Campaigns
Notable Invested Activists
• Elliott Management
• Amber Capital
• Bluebell Partners
Recent activism campaigns
| EI Towers SpA | VS. |
Amber Capital |
| Ansaldo STS | VS. |
Elliott Management |
| Banca Popolare di Milano | VS. |
Lisippo |
Total Active
Campaigns
Contact FTI Consulting
Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com
Head of Activism and M&A Solutions
Senior Managing Director
+1 (202) 312 9216
Jason.Frankl@fticonsulting.com