Family Feud Threatens $46 Billion Legacy of Italian Billionaire
Leonardo Del Vecchio, founder of EssilorLuxottica, established one of Europe’s largest business fortunes and sought to ensure its longevity after his death. However, family conflicts now threaten to dismantle his $46 billion legacy.
Years of Disputes and Governance Crisis
For four years, the newly-minted multi-millionaires, internal disagreements among their advisors, and a failed attempt by his son, Leonardo Maria Del Vecchio, to resolve the situation have caused discord. Leonardo Maria, an occasional DJ who hosts artists like 50 Cent and French Montana, has not been able to quell the disputes.
The discord has triggered a crisis of governance within one of Italy’s most significant corporate actors, Delfin Sarl. Delfin Sarl is the largest shareholder in both EssilorLuxottica and Banca Monte dei Paschi di Siena SpA, the world’s oldest bank.
Sources indicate that succession negotiations could lead the family to separate their stake in EssilorLuxottica from its financial assets, but escalating disputes increase the risk of a contentious split. "An ever-growing conflict among Delfin’s heirs could jeopardize Leonardo Del Vecchio’s estate and industrial legacy," stated Roberta Crivellaro, a partner director at Withers in Italy specializing in succession planning and family acquisitions.
Initially, Leonardo Maria offered to buy the shares of two siblings, Luca and Paola, in a deal valued at €10 billion. This plan stalled, despite being approved by family vote in April. Subsequently, the proposal stalled, exacerbated by a decline in EssilorLuxottica’s stock price.
EssilorLuxottica’s shares have fallen 49% below their November peak, when investor optimism about its collaboration on AI-powered smart glasses was high. This represents a decrease of €23.4 billion in the family’s primary asset. Leonardo Maria is currently pursuing a €1.1 billion refinancing with Apollo Global Management Inc., potentially expanding the line of credit to €10 billion. An alternative proposal involves separating the eyewear division from the bank and insurance holdings, potentially for sale to generate liquidity.
Rocco Basilico, Leonardo Maria’s brother-in-law, initially suggested this option, but there is internal resistance to selling Delfin’s financial investments, given the consolidation occurring in the Italian banking sector.
The family is seeking external counsel to mediate and reach an agreement.