Here’s a close up of the pic from ITV News that got tongues wagging on Tuesday. Click to enlarge. Young eyes recommended…
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One of the world’s largest fund managers has increased pressure on Generali by pouring scorn on planned potential acquisitions and backing calls for governance changes at the Italian insurance group. Franklin Mutual Advisers, a subsidiary of Franklin Templeton, wrote to Generali last month saying it agreed with the sentiments of Algebris, the UK hedge fund, which in October called for the removal of Antoine Bernheim, Generali’s chairman. The Franklin letter, obtained by the FT, talks about “the company’s well-documented deficiencies in corporate governance and management compensation matters”. Algebris said Generali, Italy’s dominant insurer and Europe’s third largest, was encumbered by its management structure, such as having two chief executives, and had underperformed its peers. Franklin’s support could make it easier for Algebris to add motions calling for change to the agenda of Generali’s annual meeting in April.
Activist shareholders on Monday begin meeting the large number of investor groups that have expressed interest in the campaign to force change at Generali. Italy’s largest insurer came under fire last week when Algebris, a UK hedge fund, said it dramatically underperformed rivals such as Germany’s Allianz and Axa of France and needed sweeping corporate governance changes. Algebris, which has a small Generali holding, is considering gathering enough votes to press for change at the company’s annual meeting in April.
Generali has become the latest European financial group to come under pressure from shareholder activists demanding radical changes in its corporate governance. Algebris Investments, a UK hedge fund, has sent a letter to the board of Europe’s third biggest insurer seeking big changes to its top management structure and the way Generali’s executives are paid. It believes Generali has dramatically underperformed rivals and that it is being held back by unusual governance arrangements. Generali has, for example, two chief executives and appointed its first CFO only last month.
Generali – Europe’s third largest insurer – is the latest financial group to come under pressure from a shareholder activist.
People close to Italy’s largest insurer said it had received a letter from Algebris Investments, a UK hedge fund, calling for reforms. Generali’s shares were up earlier by 2.5 per cent at €31.13 in Milan on a partially inaccurate Italian newspaper report that named the rebel shareholder as TCI. Read more