Italian authorities seize €1.29 billion Campari shares in tax evasion probe

Italian tax authorities have seized approximately €1.29 billion worth of shares in Campari from its Luxembourg-based holding company, Lagfin, due to allegations of tax evasion related to undeclared capital gains and unpaid exit taxes following a cross-border merger. The investigation targets Lagfin and its controlling family, the Garavoglias, who deny any wrongdoing and assert that Campari itself and its subsidiaries are not involved. The seized shares represent a significant portion of Campari's stock, causing the company's shares to drop by up to 6% in early trading. Prosecutors allege that the exit tax was not paid on €5.3 billion of capital gains accrued when the previous Italian holding company was merged into Lagfin, which now controls over 50% of Campari's shares and the majority of voting rights. Despite the legal issues, Campari reported strong recent financial results, including a 4.4% increase in sales and an 18.8% rise in adjusted earnings. The case remains ongoing, with the seized shares held until resolution, while Lagfin and the Garavoglia family plan to defend against the charges vigorously.