MILAN (Thomson Financial) - Activist investment fund Algebris Investments
said that Assicurazioni Generali SpA, in which it owns a stake of 0.52 percent,
has strong potential to further cut costs, to improve both in Italy and Germany
and to intensify the integration of its global business segments.
In an interview with daily Il Sole 24 Ore ahead of Generali's AGM on
Saturday, fund head Davide Serra criticized the relatively high salaries paid to
Generali's top management and that they hold fewer own-company shares than the
European sector average.
On the strategy side, Serra said Generali should have a business plan for
three or five years with verifiable targets "calculated above the costs line and
not below it."
Regarding Algebris' stake in Banca Popolare di Milano, Serra said it backs
calls by the Amber fund and its Associazione 360 Gradi shareholder association
for governance changes at the bank.
"We think that the fact that 16 out of 20 board members are nominated by the
Bipiemme association (that groups together employees holding shares) with strong
union ties does not help" improve the company's valuations.
yael.schrage@thomsonreuters.com
ysc/jms
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