Bad specs

10 October 2019 By Liam Proud Follow @liamwardproud

Luxottica eyeglass emperor Leonardo Del Vecchio wants the $9 bln Italian lender to beef up its investment bank, defying the finance lessons learned since 2008. CEO Alberto Nagel’s push into wealth management is serving shareholders well. Del Vecchio is pushing a losing bet.

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Leonardo Del Vecchio on Oct. 9 said Mediobanca’s new business plan due in November should rely less on contributions from its consumer-credit business and insurer Generali.

The executive chairman of Ray-Ban maker EssilorLuxottica, who bought a 7% stake in Mediobanca last month, wants the bank to build a "future as an investment bank, able to play a leading role in Italy and Europe".

Reuters reported that Del Vecchio’s plan is to have more control over the future of Generali, including through possible cross-border deals. Mediobanca effectively controls Generali, Europe's third-largest insurer, with a 13% stake. Del Vecchio owns 4.9% of Generali.

Mediobanca shares rose 24% in the 12 months to Oct. 10.

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