Citi Backs Major European Ownership Battle

A potential €22 billion financing package has placed Citi at the centre of a contest for control of one of Europe's most influential family investment companies. Leonardo Maria Del Vecchio, an heir to the founder of EssilorLuxottica, has offered to buy out fellow shareholders in Delfin, the holding company behind major stakes in finance and eyewear.

A person close to Del Vecchio said the American bank had secured financing of up to €22 billion for the proposed purchase. Citi declined to comment, and the offer circulated to shareholders did not disclose its financial terms. The funding arrangement and the transaction therefore remain subject to important uncertainties.

Delfin is owned in equal portions by eight shareholders. Del Vecchio is seeking to acquire five or six of those stakes, potentially giving him greater influence over decisions currently directed largely by the holding company's board. He has said he intends to present his proposal by 7 November, with options for an immediate purchase or a more gradual acquisition.

The group's influence reaches across several prominent European businesses. Delfin owns 32.4% of EssilorLuxottica, 10% of insurer Generali, 17.5% of Italian lender Monte dei Paschi and a smaller UniCredit holding. The stakes have a combined market value of around €43 billion, making the ownership dispute significant beyond the family itself.

For the banking industry, Citi's reported role highlights the scale and complexity of financing transactions involving concentrated corporate ownership. Arranging large credit commitments can create substantial opportunities for investment banks, but lenders must assess security, repayment capacity and the governance risks surrounding contested acquisitions. A reported funding commitment should not be mistaken for a completed loan or an approved takeover.

The proposal follows an unsuccessful attempt by Del Vecchio to purchase two stakes earlier this year and a separate €30 billion bid for Delfin from Czech businessman Michal Strnad. Competition for control adds another layer to negotiations.

The outcome will depend on shareholder decisions and the terms ultimately agreed. For Citi, the transaction illustrates how major banks can shape ownership contests without being the buyers themselves.