Private finance | A 20-year succession dispute that divides the Fiat household.

5 years in the past, members of Italy’s most well-known enterprise household gathered in a grand 18th-century villa exterior Turin for the funeral of Marella Agnelli, widow of the nice Twentieth-century industrialist Gianni Agnelli.

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A poignant reunion, the incident proved the most recent flashpoint in a feud that has divided the household as Margarita, the late couple’s solely surviving baby, battles together with her son John Elkin over her father’s multibillion-euro property. There was an argument. Based on a number of kin, they haven’t seen one another since.

The rift got here to gentle once more final month when authorities raided the house and places of work of Elkann, head of the household enterprise and the pinnacle of carmaker Stellantis, after his mom complained that he had helped her keep away from Italian taxes. He helped his mom.

“Margherita Agnelli has been persecuting her three older kids and her mother and father in court docket for greater than 20 years,” Elkin’s legal professionals stated after the raids.

The struggle over Gianni Agnelli’s legacy

The 20-year dispute has pitted Margarita towards her three eldest kids, which the 68-year-old says she is pursuing for the sake of her 5 kids by her second husband.

Billions of euros price of property are at stake, together with Monet and Picasso artworks and a stake in Decembré, the last word mother or father of listed Exor, whose holdings rose 2,700 per cent to €33b (NZ$58.6b). He has been underneath his grandfather Elkin since his demise greater than twenty years in the past.

Together with Fiat, carmaker Gianni Agnelli, the world’s largest carmaker and now a part of world automotive group Stellenbosch, Exor owns the whole lot from luxurious carmaker Ferrari and Juventus Soccer Membership to Dutch. Even medical gear maker Philips has main stakes within the enterprise. and information magazines The Economist.

“At stake is Dicembre’s possession and subsequently Exor’s… if Margherita wins her (a number of) claims, Dicembre’s possession stake might be redistributed, with Elkann majority might be misplaced,” stated Mauro Orlandi, professor of personal regulation at Louis College in Rome.

When Gianni Agnelli died in 2003, his widow and daughter inherited a 37.5 % stake in Dicembre, in addition to multimillion-euro property starting from artwork to property in Italy and overseas. Elkin, his grandfather’s anointed successor, had already been gifted 25 % of the corporate.

The next yr, with debt-laden Fiat’s survival doubtful, Margherita determined she wished out of the household enterprise and in Dicembre transferred her share to her mom and relinquished any rights to her property. It agreed to pay €1.2b in return.

After the settlement, underneath Swiss regulation, Marella and Margarita each lived in Switzerland on the time, and the grandmother bought a part of Decembré to the youthful Elkann siblings Lapu and Ginevra, who now personal 20 % every. , and bought his remaining holdings. John through the years.

Margarita’s Change of Coronary heart

However Margarita had a change of coronary heart shortly after the deal – she stated, upon discovering that her father’s property included a whole lot of tens of millions of euros stashed overseas, a few of which she claimed have been hers. is entitled In 2010 she misplaced a authorized problem to the 2004 settlement — however that did not cease the household feud from escalating.

Underneath the settlement, Margarita was additionally to make annual funds to her mom. She now claims that her mom didn’t pay earnings tax on the annuity in 2018 or 2019, arguing that she ought to have achieved so underneath the legal guidelines of Italy, the place she insists Marella spent most of her life. spent most of his time within the latter years. Swiss are usually not eligible for residency.

Margarita spokeswoman stated Monetary Instances that she had all the time tried to defend the pursuits of her 5 kids by her second husband, Serge de Pahlavi – and “tried to respect her father’s will as a result of he solely donated 25 % of Decembré to John Elkin.” was, leaving the remaining Margherita and the widow. Marella Caracciolo”.

Elkin’s legal professionals say Margarita cashed out in 2004 “at a time when the way forward for her household and her son’s enterprise pursuits was unsure,” and that she later modified the fiat, Hoping to make the most of the household’s further wealth, he modified his thoughts.

Margarita’s legal professionals denied that she was “instigated” by her three older kids, citing an ongoing lawsuit introduced by Marella in Switzerland in 2015 and John the next yr over a 2004 inheritance. Took it over to verify the settlement.

Lapo and Ginevra Elkin be part of the case after the demise of their grandmother. Extra instances are ongoing at Marella’s property in Switzerland.

“It’s a proven fact that Elkins began a lawsuit towards his mom (in Switzerland) earlier than his grandmother’s will was printed,” the lawyer stated.

Margherita’s cousin Lupo Ratazzi stated he believed Margherita’s habits was “vendor’s regret”.

“I bear in mind him telling me that (Fiat) was going to finish up like Parmalat,” he advised the FT, referring to the Italian meals group that collapsed in 2003. (In Dicembre) After she sells, she doesn’t withdraw from the settlement.

Wealthy rewards

John Elkin now owns 60 % of Dicembre, which in the end controls Exor. Exor, the most important shareholder in Stellantis, is ready to obtain nearly €700m in dividends after the carmaker group reported a report annual revenue of €18.6b final month.

Property owned by Exor, previously generally known as IFIL, have grown from round €1.2b on the time of Elkin’s grandfather’s demise to round €33b.

As members of the family hoped the variations could possibly be resolved, Geniora Elkin acted as a mediator between her grandmother, mom and brothers. However these hopes have been dashed at Murella’s funeral reception, the place in line with a number of visitors there was one other row of Margarita and John.

Now a serious level of competition is the place Marella lived in her closing years. Margherita’s authorized workforce has argued that since she relies in Italy, her will ought to have been ruled by Italian regulation, underneath which kids are all the time entitled to a share of a mother or father’s property.

Attorneys for the three Elkin siblings have argued in court docket that Margarita waived her proper to additional declare to the inheritance when she signed the 2004 settlement.

“In 2004, Mrs. De Pahlavi determined to independently promote her shares (in December), a transaction that can’t now be reversed,” an Elkins spokesman stated. Monetary Instances.

However Margarita’s legal professionals disagree. In litigation in Italy and Switzerland, she is difficult the validity of her mom’s will, drawn up in Switzerland in 2011, which excluded her primarily based on a 2004 settlement.

4 of De Pahlwan’s 5 kids have joined their mom in lawsuits towards their grandmother’s will. In a single case, which has been occurring for 4 years, Margarita can be difficult whether or not Switzerland ought to have jurisdiction over her mom’s property.

Based on a number of unbiased authorized specialists, if the tax fraud grievance that led to this month’s raids is profitable and prosecutors conclude that Murella was residing in Italy earlier than her demise, not in Switzerland as That, he claimed, might assist Margherita’s authorized workforce argue that Italian regulation ought to rule. Dispute over his mom’s will.

However an Elkins spokeswoman stated there was “no situation by which the actions of Mrs. de Pahlin might change the management and possession of Dycembre.”

Household division

This battle has divided Margarita’s kids. Lapu and Jeniora have sided with their brother John and reduce off contact with their mom and half-siblings, in line with family and friends.

Folks near each side of the household say the connection between Margherita, an artist who by no means labored within the household enterprise, and her three kids was “sturdy” from the early years of his marriage to Elaine Elkin.

Some members of the prolonged household, who didn’t wish to be named, argued that Margarita’s emotions of misery have been justified, alleging that some property have been hidden from her in reference to the 2004 settlement and others, together with tens of millions. Work price Euros additionally disappeared. Since Marella’s demise.

“Margarita’s father left her work that her mom saved till her demise (by authorized settlement) however a number of the artworks have disappeared,” her spokesman stated.

Nonetheless, a spokesman for Elkins stated that “there are clearly no lacking work, the works have been the private property of Marella Caracciolo Agnelli and have been absolutely accounted for by a Swiss court-appointed administrator of her property upon her demise.” was”. Margarita appeared “decided to inflict emotional ache on her three older kids.”

With seven lawsuits pending that can take years to conclude, mates and kin say the probabilities of a settlement are slim and the household is “unlikely to search out peace” anytime quickly.

written by: Sylvia Sciorelli Borelli

© Monetary Instances