“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
Average % of insider ownership:
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).
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
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
Contact FTI Consulting
Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com
Senior Managing Director
+44 (0)20 3727 1067
Edward.Bridges@FTIConsulting.com