Italy court set to rule on Agnelli family's inheritance drama, Ferrari boss' wealth at stake
4 min read . Updated: 19 May 2023, 01:55 PM IST
PremiumIn the middle of a family inheritance drama, lies the future of of Agnelli family's share holding in majo firms like Dicembre and Exor. Notably, Exor holds stake in companies like Stellantis, Ferrari and Juventus
The inheritance dispute inside the Agnelli family, the founders of Fiat company, is likely to be heard by a court in Turin, Italy. The court is expected to rule in the coming weeks. Emerging after the death of Gianni Agnelli, the celebrated Fiat boss, the case is now a bone of contention between Gianni's daughter Margherita and her children from the first marriage. One of Margherita's eldest sons John Elkann is also among her opponents in the case.
As per the case, Gianni Agnelli's daughter, Margherita, inherited 1.2 billion euros ($ 1.3 billion), against three of her eight children, including John Elkann, who is the chairman of Ferrari and carmaker Stellantis.
In the dispute, Margherita is fighting to overturn the inheritance agreements she signed after her father's death. The overturning of the agreement will ultimately benefit Margherita's other five children from her second marriage, reported Reuters citing sources.
If the Turin court decides in her favour, the 67-year-old Margherita would be able to claim half of her late mother's estate and a share in the Elkann family business.
What is Geneva Pacts, the inheritence deal of Fiat founders?
Geneva Pacts is the inheritance deal signed by Margherita, who is an artist and philanthropist, in 2004. She entered into the deal after the death of her father in 2003 and when his company, Fiat, was on the verge of bankruptcy.
As per the pact, Margherita received property, works of art, and other liquid assets from Gianni's estate and renounced any future influence in the Dicembre (December) company. Dicembre is a key part of the ownership structure of Exor, which is the Agnelli family holding. It is worth noting that Exor owns stakes in big firms like Stellantis, Ferrari, and Juventus. Whereas, Dicembre is at the heart of a web of companies spanning the vast Agnelli family investments.
The pact confirmed John Elkann, Ferrari CEO, as the successor of the company and took his mother Margherita out of the equation. Now, the 47-year-old owns Exor and brands like national newspapers and the soccer club Juventus.
In the second pact, Margherita's mother Marella's estate was discussed. Marella died in 2019 at the age of 91. Marella passed her Dicembre stake to her three grandchildren, John, his brother Lapo and sister Ginevra, from Margherita's first marriage to journalist Alain Elkann.
Now, Margherita wants the pacts to be rescinded for the benefit of her other children with second husband Serge De Pahlen, a Franco-Russian former Fiat executive, a share of their grandmother's estate, reported Reuters.
The claim of Gianni Agnelli's undisclosed wealth
Margherita, in her case, also argues that the undeclared wealth belongings of her father were discovered after his death and that she is entitled to a share of this along with other family members.
However, a source on Margherita's side dismissed suggestions and the possibility of additional hidden assets being found from Gianni Agnelli's estate, reported Reuters.
Dispute on Marella's Swiss residence at the time of agreement and death
Marella's death lead to this new legal claim which is at the centre of the case that opened three years ago in Turin, the home of Fiat and the traditional base for the Agnelli clan. The case is also one of the latest in the series of court battles over the inheritance, spread between Switzerland and Italy over the past 13 years. Marella's residence was the main cause of the dispute in the inheritance agreement that was signed years ago.
Margherita's lawyers in Turin argue that the "Geneva Pacts" should be declared null and void because they were signed on the basis that Marella's residence was in Switzerland, which they dispute. Italian law prohibits such inheritance pacts. Reuters reviewed the documents filed by Margherita's lawyers with the court of Turin.
The documents claimed that from 2003 to 2019 Marella never spent more than four months a year in Switzerland and should not have qualified as a Swiss resident. However, during the agreement, both the Swiss government and the Italian authorities confirmed Marella Agnelli's status as a Swiss resident at the time of her death in 2019 and during the signing of the inheritance agreement in 2004, reported Reuters.
Agnelli family member's share in the business
After Marella's death, John Elkann has a 60 per cent share of the Dicembre holding. His brother Lapo and sister Ginevra each own a 20 per cent share. Dicembre is the shareholder, with a 38 per cent stake in Giovanni Agnelli BV, which groups around 100 shareholders representing around 200 living descendants of original Fiat founder Giovanni Agnelli, reported Reuters. Giovanni Agnelli BV in turn has a 53% controlling stake in listed Exor, which owns stakes in Stellantis, Ferrari, and Juventus.
(With inputs from Reuters)