Two Italian families battle for control of Impreglio

Italy’s Gavio and Salini families are involved in a battle for control of Impreglio, the country’s largest construction company,

the

Financial Times

reported.

Impreglio’s revenues last year were 2.1 billion euros.

Each family holds a stake of slightly less than 30%. Shareholders with a stake of more than 30% must make an offer for all remaining shares. Bocconi University professor Federico Ghezzi told the

FT

that because ownership of Italian companies is very concentrated and there are few listed companies, proxy fights in Italy are rare.

According to the

FT,

the Gavio family, an investor in the company for seven years, seeks to block a move by the Salini family from voting in a new board. The Salini construction company acquired its stake this year, the

FT

article said. If it gained control, Salini would pay a special dividend, sell non-core assets and merge its company with Impreglio.

Among Salini’s moves would be to sell Impreglio’s concession businesses, which Gavio contends are a cushion against cyclical building contracts, the

FT

article said. Beniamino Gavio has called Salini’s plan for a special dividend pandering to institutional investors, according to the report. Each family has vowed to obstruct the other’s initiatives, the

FT

article said. (Source:

Financial Times,

July 5, 2012.)