Italy's market watchdog fines LVMH executive over Bulgari deal
today Nov 2, 2016
Italy's market watchdog has fined LVMH Managing Director Antonio Belloni 350,000 euros ($388,185), saying he divulged confidential information to a fund manager before the luxury group's 2011 acquisition of jeweller Bulgari.
Belloni informed Alessandro Sonvico, an asset manager at Swiss-based wealth manager Pentagram, of an upcoming LVMH offer for Bulgari shares, Consob said in a statement on Wednesday. Consob also said it had fined Sonvico 350,000 euros.
Belloni denies the charges against him and LVMH said he would appeal the Consob decision.
"Mr Belloni notes the administrative decision by Consob which he has decided to appeal, challenging all aspects of the charges against him," Belloni's lawyer Francesco Sbisa said.
Pentagram was fined 150,000 euros.
Fines must to be paid to the Italian tax agency within 30 days if the recipient is an Italian resident. If they are not a resident they have longer to pay up but must do so even if they appeal the decision.
No one at Pentagram returned calls for comment. Sonvico did not respond to a request for comment via Linkedin.
Consob also said Belloni and Sonvico had been barred from holding any management role in a listed company for eight months from the end of October.
LVMH said according to its French and Italian lawyers, none of the positions held by Belloni would be affected by the Consob decision.
"LVMH, which has been fully informed by Antonio Belloni throughout, maintains full confidence in its group managing director whose loyalty and integrity have been constant features since he first joined the group in 2001," it said in a statement.
($1 = 0.9011 euros)
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