Campari (BIT:CPR) shares tumbled after Italian authorities seized a major stake in the company held by its controlling shareholder, Lagfin, the Luxembourg-based holding of Chairman Luca Garavoglia, as part of a tax fraud investigation. The seizure, carried out on Friday, October 31, involves shares valued at nearly €1.3 billion, representing part of Garavoglia’s 52% controlling interest in the spirits group.
The Guardia di Finanza announced that the seizure was ordered by the preliminary investigations judge of the Monza court on charges of fraudulent declaration through other means and administrative liability of legal entities, according to a statement from the Monza Public Prosecutor’s Office. Both Garavoglia and Alberto Giovanni, Lagfin’s legal representative, have been listed as suspects.
The probe originated from a tax inspection following the 2018 merger of Campari’s Italian subsidiary into Lagfin. Investigators allege that the group failed to declare over €5.3 billion in capital gains subject to Italy’s exit tax after the merger. Authorities believe Lagfin formally moved assets to a newly created Italian branch while keeping real financial control at its Luxembourg headquarters.
According to the Guardia di Finanza, the seizure was executed “entirely through the placement of a lien on the ordinary shares of Campari,” corresponding to the amount of unpaid tax tied to the company’s transfer abroad.
The news triggered an immediate market reaction: Campari’s stock dropped 4% in early trading on the Milan Stock Exchange, hitting €5.67, making it the worst performer on the FTSE MIB, which was up 0.7% at the time.
The company swiftly issued two clarifications. In the first statement, Campari confirmed that “the dispute does not concern Davide Campari-Milano NV nor the Campari group,” adding that “there are no consequences” for the company or its operations.
In a second release quoting Lagfin, the holding company emphasized that the issue “concerns a tax dispute that has been ongoing for approximately two years and which has never involved the Campari group in any way.”
Lagfin further stated it “is certain that it has always operated in full compliance with all regulations, including Italian tax regulations, and will vigorously defend itself with calm rigor in all appropriate venues.”
The company also reassured investors that “since Lagfin holds more than 80% of Campari’s voting rights, the measure is absolutely not capable of affecting Lagfin’s controlling stake in Campari.”
Analysts, however, warned that the development could weigh on sentiment. JP Morgan said that “although the Campari group is not involved, the news could put pressure on the shares, with uncertainty lingering until the tax dispute is resolved.”
Market strategists estimate the seized shares represent around 16% of Campari’s total market capitalization — a level they describe as “significant” if authorities were to sell them to recover unpaid taxes.
Analysts at WebSim Intermonte noted that the tax dispute between Lagfin and Italian authorities “was already well known” and reiterated that “the measure does not affect Lagfin’s controlling stake in Campari.”
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