Berlusconi legacy, the testament puzzle. Fininvest, the balance between children linked to a 20% stake – Corriere.it

All for one, Fininvest for all. Silvio Berlusconi has left five children around the Biscione. And now that his 61% will be divided among the heirs, the rearrangement is upon us. Marina (56 years old) and Pier Silvio (54) were born before the holding company was set up (1975) and grew up on bread and Fininvest. Barbara, Luigi and Eleonora have taken their own path, diversifying, so much so that in H14 total assets of approximately 650 million appear: 400 million attributable to investment activities and another 250 approximately (historical value) attributable to the stake in Fininvest.

They are all equal, brothers and sisters, in terms of dividends but not in terms of governance. The role and weight of the Cavaliere’s two children and his first wife Carla Dall’Oglio is decidedly higher than that of Veronica Lario’s three children. Marina has been president of Fininvest and Mondadori for years. Pier Silvio is managing director of his “province” Mfe-Mediaset. Defined powers and roles, crystallized over time.

But there was never any discussion as long as the founder ruled. And the system of internal rules (statutes) of the proprietary galaxy, starting from Berlusconi’s personal finances, presided over by Marina and Pier Silvio, is so simple that it does not provide for qualified majorities or preemptions, on the assumption that there is trust and harmony between the various shareholders. As long as there is a 61% shareholder, it is a “governed” balance. From here on, voting stakes could be introduced, restrictions on the transfer of shares. Berlusconi himself may have foreseen in his will “buffer” quotas between two blocks of shares, entrusted to a guarantor. Also because then, slowly, in perspective, the troop of the founder’s 16 grandchildren will arrive.

Marina and Pier Silvio — we remember it — today they each hold 7.6% of Fininvest with their respective personal companies, H4 (in full Holding Italiana Quarta) and H5. Barbara, Luigi and Eleonora are together in H14 which has 21.4%. Already now, and before the will is opened, we can glimpse the new structure on the basis of the legitimate shares of the inheritance. In fact, the former prime minister could dispose of one third of the assets and therefore about 20% of Fininvest (one third of 61%) for the succession. This means that the remaining 40% automatically goes to the 5 children, 8% each. It means that the three “young” ones rise to 46% and the two “old” ones, together, to 32%. This scenario includes the unknown factor of 20%, which is the heart of the will, net of the splendid villas and who knows which and how many works of art of value. It is conceivable that the Knight did on 20%, as was said, a choice of neutral ground for Fininvest continue to be governed by those who have led it up to now (in addition to the managers, Marina and Pier Silvio, Barbara and Luigi also sit on the board) and continue to churn out dividends. Which then the H14 of Luigi & C, for example, turns into excellent business.

H14 Growth Vitamins — which has just moved into the new offices in Piazza Borromeo in Milan — were provided in departure by Fininvest dividends. But now the family office has transformed into an investment platform that feeds on itself through returns on investment. Thanks to Luigi’s commitment. Bocconian, work at JP Morgan in London and other experiences in finance. Then it took off and now the holding company of which the three brothers are partners is autonomous. It is the result of successful bets on growing companies, especially in the technology and innovation sector for which Luigi has passion and talent. The holdings in Jakala, Deliveroo, Westwing, Bending spoon, return round returns, around 20%. H14 invests in companies to be supported also through the club deal formula, i.e. by joining forces with other entrepreneurial dynasties. Luigi is the president of H14, Barbara the managing director, Eleonora, three children, keeps more aloof from corporate life. But between the three brothers there is a constant flow of information about the activities. All are on the board, supported by Geronimo La Russa, a lawyer, son of the president of the Senate Ignazio La Russa. Barbara, five children, had in the past been appointed by the AC Milan board as vice president and managing director for non-sporting social functions. In the team there are about ten young professionals, because the H14 and its results have long been able to attract talent in finance.

Meanwhile, the speculative flare on the Stock Exchange seems to have died down: yesterday Mfe-Mediaset’s B share, the most representative one with ten voting rights, lost 2.4% while Mfe A lost 3.9%.