Italian billionaire heir Leonardo Maria Del Vecchio has vowed to keep his late father’s business empire in Italian hands, after Czech billionaire Michal Strnad offered €30 billion ($34.8 billion) for the family’s holding company.
Strnad, 34, made the offer for Delfin, the Luxembourg-based firm that is the key shareholder in eyewear giant EssilorLuxottica, in a letter dated Oct. 20, Reuters reported on Thursday, citing Italian newspaper Il Domani. The letter, addressed to Delfin Chief Executive Romolo Bardin, said Delfin “perfectly fits my investment approach and strategy.”
The cash offer covers all of Delfin’s capital and is valid for 30 days, Milano Finanza reported. Strnad would also consider taking control with a 62.5% stake, and suggested Delfin could buy back up to 25% of its shares from heirs who want to sell.
Del Vecchio, one of the eight heirs who each own 12.5% of Delfin, rejected the idea of a sale. “The work of a lifetime by my father must remain part of Italy’s heritage,” he said. He described EssilorLuxottica as “the only true Italian champion.”
Delfin’s holdings include stakes in EssilorLuxottica, insurer Generali, Monte dei Paschi di Siena and UniCredit, with a combined market value of about €43 billion. The offer reportedly values Delfin at a discount of about 30% to its net assets, which is seen as a major obstacle.
A sale would require near-unanimous approval from the heirs: the late Leonardo Del Vecchio’s six children, his widow Nicoletta Zampillo and her son from a previous marriage. The heirs have grown increasingly divided, and some complained they learned about the letter late, according to Il Domani.
Milano Finanza reported that other shareholders share Leonardo Maria Del Vecchio’s opposition to the bid. Delfin declined to comment, and a representative for Strnad was not immediately available.
The offer adds a new twist to a family struggle over the empire. Del Vecchio has separately offered €3.5 billion to his half-brother Rocco Basilico for his stake, and the heirs have weighed a bank-funded buyout to resolve their differences.
He has also clashed publicly with EssilorLuxottica’s leadership, stepping up a feud with the company’s boss, and is expanding into media with a planned takeover of newspaper Il Fatto Quotidiano.
Strnad heads Czechoslovak Group, a defense company that listed in Amsterdam this year. He bought a 14% stake in tire maker Pirelli earlier this year and recently took a $434 million stake in Canada’s MDA Space.